Tax question,pls be advised

I bought $1000 notes from American Business Financial Services,Inc 0n Oct,2002. The term was 3 years.
Now the company is in the process of bankrupcy. I lost all my money. My question is if I can claim loss
now and if yes,Can I deduct this loss from my interest gain(2005) or have to consider as a capital loss (like a worthless stock) to use form Schedule D? Thank you so much in advance!