Eranthe Law

Whether you’re considering bankruptcy, currently navigating the process, or supporting someone who is, our A-to-U series provides a valuable educational resource for understanding the many aspects of bankruptcy.

This article, “A” in our A-to-U blog series, explains that when filing for bankruptcy, you must disclose all of your assets—not just those with high value or investments. Assets include everything you own, from vehicles to electronics, clothing, and even intangible rights like tax refunds or legal claims. You must also disclose assets held for others or assets located outside the state or country. Full disclosure is essential: failing to list all your assets can lead to serious problems. The general rule is simple—list every asset to protect your interests during bankruptcy.

Make me a list of your assets, I say.

But I don’t have any assets, you say.

It’s a common misunderstanding that assets must have a high value. Assets are simply all the property that you have and includes every form of property not only real estate (the house, condo, vacant lot, commercial building and/or apartment building). All forms of assets must be disclosed if you file for bankruptcy.

Some of the most common assets that people have include:

Bicycles
Books
Cars
Trucks
Motorcycles
Scooters
Cemetery plots
Cremation certificates
Clothing
Jewelry
Coin collections
Computers
Accounts receivable
Electronics
Furniture
Insurance policies
Stamp collections
Art on the walls

Assets that someone is holding for you and assets that are out of the country are all listed. There is even a place to disclose assets that belong to someone else that you are holding for them.
Assets are more than stocks and investments

Assets include future rights such as potential income tax refunds. Assets also include intangible things such as business goodwill, the right to sue someone, or stock options. All assets must be disclosed on the bankruptcy schedules and exemptions remove the exempt assets from property of the bankruptcy estate.

For bankruptcy purposes, it is better to err on the side of disclosing more than less. If an asset is listed and the trustee chooses not to sell it, you can keep it. If it wasn’t disclosed, the trustee can still come back years later and sell it to satisfy your creditors. The general rule is list it or lose it.

https://bankruptcyattorneysanrafael.com/a-is-for-assets/

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