Who determines the value of my assets in bankruptcy?
As you prepare to file for bankruptcy, your attorney will meet with you and discuss the assets you own. They will also discuss their value. This is because the person filing for bankruptcy must disclose all assets to the court during the bankruptcy process. This is done so that your lawyer can help you inform the court (and creditors) about the protections that are available to protect the things you own while you navigate bankruptcy.
The extent of protection for these assets depends on many factors, including the chapter in which bankruptcy is filed, the type of assets you own, and most importantly, the value of these assets. This raises the question: who determines how much these assets are worth. In general, valuations are provided to the trustee at the 341 hearing. This is also known as the first meeting of creditors. This means that your attorney will record the value of your assets when you sit with them for your review and signing, where you will discuss with them what you think is a reasonable appraisal. They will base their valuation on websites such as Kelley Blue Book and JD Power, as well as on your own knowledge (especially with items like furniture, electronic devices, and clothing, where the value is more dependent on the condition and original purchase price than an online estimate). The trustee will usually accept these projections as they are, assuming that the estimates are reasonable and based on current sales value. They reserve the right, however, to do further research if a value they feel is understated. This could be by asking for pictures of the item or, in certain circumstances, having an auctioneer or estimator examine it. In the vast majority, however, the trustee will accept the value offered as long as it is supported by facts. Call Now for a Free Strategy Session with a MN Bankruptcy Lawyer at LIFEBACK LAW FIRMS
Ensuring your assets are properly protected is a major concern when considering bankruptcy. Determining the value of these assets is crucial to ensuring they are properly protected. Our staff is experienced in recording and reporting these estimations, and would be happy to work with to ensure that your assets (and protection) are fairly valued 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
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