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How Should You Assess Your Assets Prior to Filing for Bankruptcy?

How Should You Assess Your Assets Prior to Filing for Bankruptcy?
"""As part of filing for bankruptcy, you are required to evaluate all of your property. The reason for this is that the bankruptcy trustee assigned to you will evaluate all of your nonexempt assets to determine whether they can be liquidated to repay your creditors.

Therefore, you are required to detail all of your assets on paper and present it to both the trustee and the court when you present your bankruptcy application for approval. The items you list on this report will have a significant impact on what you have left after the bankruptcy proceedings conclude.

However, you should never attempt to conceal the assets you possess. A number of individuals registering for bankruptcy attempt to conceal money or assets in order to avoid losing them. However, if your deceit is discovered, as it is in many instances, your bankruptcy petition will be denied and you will not receive the debt relief you desire. In addition, knowingly providing false information on a bankruptcy application or filing is considered fraud and is punishable by a fine and possible prison time.

Utilize a worksheet when evaluating your property. Divide it into left and right sections. Include all of your assets on the left. On the corresponding right side, indicate the asset's replacement value. This is the quantity required to purchase the item at current market prices. In other words, if you own a ten-year-old automobile, you would examine the blue book value and deduct the cost of any repairs. This estimate is used by the trustee to determine how much money could be obtained from the item if it were auctioned or sold.

From your perspective, the lower the item's value, the better the bankruptcy outcome. This is due to the fact that bankruptcy trustees are primarily compensated through commissions from the sale of your property.

If an item of property is of low value, he may determine that it is not worthwhile to sell it. In this scenario, you would keep the item after filing for bankruptcy. If he believes, however, that it is of great value, he will attempt to get as much as possible for it, and you will lose it. However, do not intentionally undervalue any of your assets, as doing so could be considered an attempt to perpetrate fraud.""

" - https://www.affordablecebu.com/

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"How Should You Assess Your Assets Prior to Filing for Bankruptcy?" was written by Mary under the Finance / Wealth category. It has been read 202 times and generated 1 comments. The article was created on and updated on 02 June 2023.
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