top of page
  • Writer's pictureRedd Law, PLC

Determining Property Values in Bankruptcy

Everyone who files bankruptcy must disclose all of their real and personal property. The value of real estate can be easily done with an appraisal or market analysis. For cars, debtors can look at the blue book value. The biggest problems with valuation arises when debtors attempt to determine a value for other personal property such as clothing, household goods and furnishings.

When determining value, it’s important to think carefully about what you actually own. You must consider the age and condition of the property. Although jewelry, antiques and collectibles often increase in value, most property items decrease in value. Therefore, old clothes, furniture and appliances will usually be worth less than the original purchase price.

Generally, property is worth what someone else is willing to pay for it. If you’re completely unsure about what you should list as the value of certain property, it can be helpful to browse web sites that feature used items for sale such as eBay and Craigslist. Ultimately, the value that you list will be an educated guess because there is no way to know for sure how much someone is willing to pay for something unless you actually attempt to sell it.

Some of my clients have inquired about whether the bankruptcy trustee would show up at their homes to look at their personal belongings. I have not seen it happen, but it can happen if the trustee has a reason to believe that the debtor owns more than what is listed on the bankruptcy schedules.

2 views0 comments

Recent Posts

See All

The Role of Chapter 13 Trustees

Anyone who files a Chapter 13 bankruptcy petition gains some familiarity with a Chapter 13 trustee. In Detroit, there are three Chapter 13 trustees. Each trustee administers cases assigned under a p

Is Bankruptcy Necessary when You’re Uncollectible?

When a creditor gets a judgment against a debtor, the creditor can attempt to collect the money owed by doing things like garnishing wages, bank accounts or state tax refunds. However, there are some

Chapter 7 Bankruptcy for Small Businesses

Corporations, limited liability companies, and partnerships are allowed to file a chapter 7 bankruptcy petition. Like individuals, business entities receive protection from creditors in bankruptcy.


bottom of page