What Goes on a List of Assets for a Chapter 7 Bankruptcy Filing?
If you are facing an increasing amount of debt and are not sure how you’ll ever get out of it without help, then it may be time to consider filing for bankruptcy under Chapter 7. When filing for bankruptcy, you’re required to produce a list of your assets to the court. You may not think that you have any assets because you can’t pay your bills, but you do have assets. The definition of what is an asset for bankruptcy might be broader than you think. Read on to learn more about how to compose a list of your assets for the bankruptcy court.
Liquid vs. Non-Liquid
Assets fit into two categories: Liquid and Non-liquid. Cash is a liquid asset, as is anything with an obvious money value, like a bond or a share of stock. Non-liquid assets are the things you own. Your list should include all the items in your possession. This means you should list large items like your house, car, TV or computer, but also small things that don’t seem to have much value, like clothing and kitchenware. Don’t worry; it’s highly unlikely that the bankruptcy court will sell your clothing to satisfy your creditors, but the court still needs a complete list of what you own to ensure that you qualify for bankruptcy relief. You’ll also need to list some items that you don’t yet own, but anticipate receiving soon, like a tax refund or a bonus at work.
Don’t try to hide assets from the court
It can be scary to tell the bankruptcy court what you own since it might feel more likely that you’ll lose items important to you in a sale to pay your creditors. However, failing to include an item you own on your list of assets is a violation of the law that could land you in very hot water with the bankruptcy trustee. There are many legal ways to shield your possessions from sale by the court. Your attorney can help you find exemptions for the items most dear to you. Speak with an experienced Alabama bankruptcy lawyer to help you compose a full list of assets and to walk you through the bankruptcy process.
If you are struggling under a great deal of medical or credit card debt in Alabama, seek help in evaluating your options to start over with a Chapter 7 or Chapter 13 bankruptcy filing by contacting the compassionate and knowledgeable Montgomery bankruptcy lawyers at the Dansby Law Firm, at 334-834-7001.