What Is Considered an Asset When Applying for Bankruptcy
While it may not be the nicest idea to think about, for many people in financial situation which they have no way out of, bankruptcy is the only option available. However, before you decide to go down this path you should be aware of the type of items that can be recovered as part of a bankruptcy claim. Below are some of the most common articles used to recover owed funds as part of a bankruptcy application.
Naturally, any property that you have will be counted as an asset towards your bankruptcy claim. So much so, that if you own a significant portion of real estate then your bankruptcy could be denied. If it is not declined, any property that you own
will definitely be included in the assessment.
If you are in the possession of a large amount of property, it might be a good idea to sell it privately prior to your bankruptcy and including the funds as available cash. This is for the purpose of raising more money in the sale then would have been received through an agency organized auction or sale.
Whether it’s the motorbike that you never ride, the sports car that you drive every day, or the golf cart which you use at the course. If it is a vehicle and the ownership papers have your name on them then you can get that it will be considered an asset and brought to auction to recover debts owed.
There is one potential method to keep one vehicle. If you use the vehicle primarily for the purpose of your employment, and your ability to repay any further outstanding monies, you may be allowed to maintain ownership of a vehicle.
Personal Items and Collectables
If you have a passion for finding rare and antique books on the Groupon Coupons page for AbeBooks then those items too will be held as assets. While you may appreciate them for the reading art that they are, memorabilia and antique books can fetch a high price when sold at auction, a point that a bankruptcy agent will be quick to point out.
Everything Except Your Phone
If you have a collection of laptops, computers, DJ equipment, or any other type of electrical equipment or machinery then it will be considered as an assess in the eyes of your bankruptcy application. The reason for this is because these items aren’t considered essential (such as your refrigerator or washing machine), and accordingly, luxury items are considered to be assets.
While you won’t be asked to surrender any small pieces, if you own any large jewelry pieces or any piece of notable worth then a bankruptcy judge will consider them to be assets and either request their sale or place them up for sale as part of your proceedings.
If you are the position where bankruptcy is your only option then it is best to be educated and prepared for the process. Take this article into account when completing your information or considering the decision to gain a better idea of what could be ahead.