Valuing Your Property in the Bankruptcy Code
Under the new bankruptcy law, the bankruptcy abuse prevention and consumer protection act requires that a debtor’s assets must be valued at replacement cost. Most attorneys will give you a notice that is required of the bankruptcy code, which explains valuation similar to this section from the disclosure. It states, you must determine how much personal property is worth as it is today. Do not value your property based upon what you can sell it for. Instead, value it at what you would have to pay to replace it. If your property is new or close to new, consider retail value adjusted to whatever extent appropriate for the amount of the property has been used. For example, use thrift store prices or maybe even garage sale.