Understanding Your Duty to List All Assets and Liabilities in Kansas or Missouri Bankruptcy Cases
Filing for bankruptcy involves full transparency with the Court. One of your key responsibilities as a debtor is to list all of your assets and liabilities when filing your Chapter 7 or Chapter 13 bankruptcy case in Kansas or Missouri. This is not optional, and failing to do so could jeopardize your case. Here’s what you need to know.
What Are Assets and Liabilities?
- Assets: These include everything you own, regardless of its value. Examples include:
- Furniture (e.g., couch, kitchen table)
- Electronics (e.g., computer, TV)
- Clothes
- Bank accounts
- Real estate
- Vehicles (even non-running ones)
- Income tax refunds
- Personal injury or damage claims
- Any money owed to you by others
- Liabilities: These are your debts and obligations, such as:
- Secured debts (e.g., mortgage, car loan)
- Unsecured debts (e.g., credit cards, medical bills)
- Priority debts (e.g., taxes, child support)
- Lawsuits where you are a named defendant
Why Is Listing Everything Mandatory?
Failing to list all of your assets and liabilities can have serious consequences:
- Risk to Your Discharge: Not listing an asset could result in the denial of your bankruptcy discharge, meaning you won’t be relieved of your debts.
- Loss of Claims: If you fail to list a claim or potential claim (e.g., a personal injury lawsuit), you may lose your right to recover on it in the future.
- Legal Compliance: Bankruptcy law requires full disclosure to ensure fairness to creditors and proper administration of your case.
How to Value Your Assets
When listing your assets, you’ll need to provide accurate valuations. Here’s how:
- Real Estate: Use a Comparative Market Analysis (CMA) from a real estate agent or check recent neighborhood sales. Use a quick-sale value if possible.
- Vehicles: Reference the N.A.D.A. Official Used Car Guide for fair market value.
- Household Goods: Estimate the value based on what you would pay for similar items at a thrift store, garage sale, or used furniture store.
- Other Property: Use reasonable methods to determine replacement value.
Will You Lose Your Assets?
Listing your assets does not mean you will lose them! Kansas and Missouri offer bankruptcy exemptions that may allow you to keep essential property, such as:
- Your home
- Your car
- Personal belongings
- Retirement accounts
- Tools of your trade or business
These exemptions vary by state, so it’s important to work with an experienced bankruptcy attorney to maximize your protections.
Benefits of Filing Bankruptcy
Filing for Chapter 7 or Chapter 13 bankruptcy can provide relief from financial stress, including:
- Stopping harassing calls from creditors
- Preventing garnishments and foreclosure
- Discharging debts that have been causing sleepless nights
At Walden Legal Solutions, we guide you through every step of the bankruptcy process, ensuring you are well-prepared and protected.
Schedule your stress-free consultation today!
