How to Calculate the Value of Assets for a Bankruptcy
When you file for bankruptcy you take on the individual responsibility to provide accurate financial numbers to the bankruptcy court. This includes the requirement that you list all of your assets and their estimated fair market value. It is your responsibility to research and estimate fair market value.
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Instructions
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Estimating Asset Values in Bankruptcy
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Itemize each asset that you own, including personal property and real property.
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For real property, obtain a fair market value estimate from a licensed real estate broker. Alternatively, you can use the fair market value listed on your county property tax valuation, or if you have had the property appraised recently, you can use the value from the appraisal.
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For personal property other than automobiles, research the replacement cost of each item of property. For example, you can search for a similar item on eBay, craigslist, or in the local newspaper classified ads.
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For automobiles, use kbb.com or NADA.com to obtain an estimated value on your vehicle. Be sure to accurately include the condition of the vehicle, the correct mileage and any non-standard options on the vehicle.
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Tips & Warnings
As long as your estimates are fairly accurate, you will probably not be questioned further. If you are struggling to estimate the value for a specific piece of property, consult a local broker or consignment dealer. Ultimately, however, you should make your best guess and move on; if you are off slightly in your estimate, you won't face any penalties.
Make a diligent effort to research the correct value of your property; if you don't, you may be charged with fraud, which could result in your bankruptcy petition being dismissed. If you lie, you could face contempt charges from the bankruptcy judge. To avoid this, do some research and make an honest attempt to estimate the correct fair market value.
