When you leave your attorney’s office and sit down to fill out your bankruptcy paperwork, one of the most difficult tasks is figuring out what amount to list as the value for your property. Most people do not want to put anything down that may not be completely accurate but some values are more difficult to arrive at than others.
For instance, when determining the value of a late model vehicle, it is an easy process of visiting the website of NADA (nada.com) or Kelly Blue Book (kbb.com). Just select the year, make and model of your vehicle and the value is presented. Often less valuable items such as inoperable vehicles and household furnishings are the most difficult for people to assign a value.
As a general rule, you should list most items using a “yard sale” value. If you were to set your possessions out in your front yard and hold a one day sale, what would the items sell for? For an old car which is no longer working without some expense, ask yourself what you would pay for the car in its current state, not what you would pay after the car is fixed or refurbished. This is the most proper methods to use when assigning values to your possessions.
Written by: Kenneth Elmer (Bond, Botes, Reese & Shinn, P.C.), Jasper & Birmingham, AL
