How do I value property for bankruptcy schedule B?

When filing for federal bankruptcy, Schedule B must be completed to describe and detail all personal property of the debtor and the estimated value of each piece of personal property. Schedule B must include all personal property including any property that is designated as security for secured debt and property that may not be considered as part of the final bankruptcy estate.

The central points to remember when trying to estimate the value of your personal property is to be as honest and reasonable in making the valuations of the property. Most bankruptcy judges, trustees and creditors will not object to reasonable estimations. The property should be valued as of the date of the bankruptcy filing and not as of the date of purchase. Below are categories of property that may need to valued for inclusion on a Schedule B:

Cars

The best way to estimate the value a car is to check on its “Blue Book” value.  If the car presently needs substantial repairs, then the estimated cost of making the required repairs may be deducted from the blue book value of the car.  A letter from a mechanic concerning the estimated present value of the car may be helpful.

Home Goods and Electronics

Home goods, such as furniture, clothing, kitchen appliances, cutlery and dishes, are valued for Schedule B purposes as if they were offered for sale in a yard sale or in a local classified ad. In general, people deduct approximately 20 percent from the original purchase price for each year of ownership. The present condition of the item would of course affect the value of that item.

Antiques, Jewelry, Collectibles

The best way to value antiques, jewelry and other valuable collectables is to obtain a formal professional appraisal of that property. You can also try to find a similar item that recently sold at auction or by a jewelry or collectible store to determine the present market value.

Getting Legal Help

It is always best to have a bankruptcy attorney review a completed Schedule B prior to the formal filing of that bankruptcy documents with the federal court. The bankrupcty Schedule B personal property declarations must be reasonable and comprehensive in accounting for every piece of property owned by the debtor.