If you’ve made the decision to file for bankruptcy, one of the early steps is to make a list of all of your assets. However, before you can do that, you need to understand what the court considers assets. You may find that some of the things you own don’t count, but others you assumed wouldn’t be an asset actually are. Let’s take a look at assets and how they’re classified.
First, you should carefully consider which type of bankruptcy you’re filing. If you’re filing Chapter 13, your assets can’t be liquidated. On the other hand, if you file Chapter 7, the court can sell off your assets and use that money to pay your creditors. Be very certain you understand the consequences of filing each type of bankruptcy before you select one.
You will need to list all of your properties. This includes your home, any second home you have, any rental properties, and any land you own. If you have a legal interest in the property, it’s an asset. You will also need to list other information about the property, such as the value of the portion you own, the type of ownership you have, etc.
The 35 Categories of Personal Property
Bankruptcy Schedule B is a listing of all of your personal property, and it’s broken down into 35 different categories. This may look daunting, but it’s actually not that bad. There are categories for vehicles, bank accounts, boats, aircraft, jewelry, furnishing, and other items. This includes every chair, table, bed, lamp, microwave, lawn mower, and every other item you own. It may seem like a lot, but don’t worry—you will be able to list many of these items on Schedule C, which outlines what assets are considered exempt.
List Everything, No Matter How Small
With bankruptcy, it’s always best to err on the side of caution. If you’re not certain an asset counts, put it on the list. The court trustee can skip over items they find too minor to deal with, but if they notice something like a sofa or washer/dryer wasn’t declared, they may investigate further. In short, you won’t be penalized by being too detailed, but you most certainly will be in trouble if you’ve left items off the list.
This is where the experts at Michael F. Kanzer & Associates can help. With years of experience in bankruptcy, they will be able to guide you through the process and ensure that you’ve listed all of the assets required. Contact them today to schedule a free consultation.