In virtually any bankruptcy proceeding, one of the first things that will always take place when preparing to file is that your attorney will sit down with you to discuss the assets that you own and the values that they hold. This is done because in any bankruptcy, the person filing must disclose their assets to the court as a part of the bankruptcy process. One of the primary reasons that this occurs is so that your attorney can assist you in informing the court (and your creditors) of the protections, known as exemptions, that exist to safeguard the things that you own as you navigate bankruptcy.
The extent to which these assets may be protected depends upon many different things, including the chapter of bankruptcy being filed, the nature of the assets that you own, and perhaps most significantly, the value that these assets hold. This necessarily begs the question – who determines what these assets are worth? Generally speaking, valuations are provided by the person filing and then verified or validated by the trustee during the 341 hearing (also referred to as a first meeting of creditors).
In practical terms, this means that the value of your assets will be recorded by your attorney when you sit down with them during your review and sign, where they will converse with you about what you feel is a reasonable valuation. They will do this based on both specific estimates using websites like Kelley Blue Book, JD Power and Zillow, as well as your own knowledge of what your assets are worth (especially for items like furniture, electronics, or clothing, whose value will be more dependent on their condition and initial purchase price rather than an online estimate).
Assuming that good faith estimates with a reasonable basis on current sale value are provided, the trustee will often take these projections at face value. However, they also reserve the right to conduct further research if they feel a value is understated, such as by requesting pictures of the items, or in certain circumstances, by having an estimator or auctioneer examine them. However, in the vast majority of cases, the trustee typically defers to the value provided as long as there is a factual foundation to support the number being offered to them.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
Ensuring that your assets are protected in bankruptcy is a primary concern when considering a possible filing, and determining what these assets are worth is critical to ensuring that they are properly protected. Luckily, our staff is highly experienced in assisting with the process of recording and reporting these estimates, and we would be more than happy to work with you to ensure that your assets are fairly valued (and protected) in bankruptcy. So, when the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.
