When a bankruptcy case is filed you are saying to the Court, I have listed everything I own or have an interest in.
Now, this doesn’t have to be a formal inventory of every single thing in your home, but more so broader categories of what you have. For example, we do not expect anyone to count how many forks, spoons, and knives they have, but instead we list that there are household goods. Another example would be, no one cares about each and every shirt, pair of shoes, and pants you have, but instead we list the broader category of clothing.
Some items that we list may surprise a lot of clients. Usually the asset that comes as the biggest shock is, pets. We do have to list household pets. Now is someone really going to care if you have a pet tabby cat? No, usually not, but we have to list it.
Not only are these items listed in the bankruptcy, but we also have to list their value. This is done in the same way, we do not expect anyone to write out the value of each and every item they own, but instead we go category by category. The valuation is typically based off of what your item, in its current condition, would be worth. For example, if you have a rusted out lawn mower that isn’t running, we would give it a value as it sits. We would not look at what it would be worth if you repaired it or had to go out and get another.
Listing and valuing the assets you have is just another step to a fresh start with bankruptcy. Visit www.kainscott.com to speak with an attorney today. You will be glad you did!