Why does my bankruptcy attorney ask me for this - Auto and other personal property valuations (pt 3) final

Like real estate, attorneys need to have values for vehicles, electronics, furniture, and other personal property to determine whether any of the property is outside the debtor's exemptions. For the most part, personal property is covered by the federal exemptions. But we still need to go through the process of valuing it.

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The value of the property is the value at the time you are preparing to file bankruptcy and usually not the original purchased price. Also, items should be valued separately when possible. For instance, many people buy a "bedroom set" for a single price, which may include a bed, dresser, two nightstands and maybe lamps. They pay one price for it all. But each item has its own value.

Cars are pretty easy. Our trustees accept print outs from Kelley Blue Book and NADA. NADA also value other motor vehicles and recreational vehicles. Other items are a little more difficult. Valuing things like computers, bicycles, and exercise equipment pose a bigger challenge. This is a website that will give you values for Apple products. I have used websites like eBay, Amazon, and Craigslist to estimate values on other personal property. Sometime you just need to be creative.

For basic necessities like clothing, kitchenware, etc., I ask my client to tell me how much they would pay for the items if they were buying them in a second hand store or how much they would deduct from their taxes if they were to donate the items.

Whatever values you use for your bankruptcy, you need understand how you arrived at the values and to be able to support them. It is important to have accurate values.

If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

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