A Chapter 7 bankruptcy filing may allow you to discharge many of your debts. If you are struggling to pay your mortgage, car loan, credit card bills or other monthly expenses, filing for Chapter 7 bankruptcy protection may put you on the path toward financial freedom.
When you take advantage of Chapter 7 bankruptcy, you typically must part with certain assets. That is, the bankruptcy court may sell some of your possessions to satisfy your outstanding debts. Are you going to lose your dog during the bankruptcy process, though?
Your dog is an asset under bankruptcy law
Even though your dog is a living animal, it is an asset to the bankruptcy court. Consequently, when you disclose the assets you own, you must list your dog. Failing to do so may have serious consequences.
Your dog probably is not worth much
Even though you must inform the bankruptcy court that you own your dog, you probably should not worry about losing the animal. After all, your dog probably is not worth much to the bankruptcy trustee. That is, the cost of selling your dog likely greatly outweighs any profit the bankruptcy trustee may realize from a sale.
Your dog may fit into an exemption
If the bankruptcy trustee determines your dog is worthwhile to sell, you probably have an additional option for saving the animal. Specifically, you may be able to fit the dog into a bankruptcy exemption.
Bankruptcy exemptions are assets you do not have to sell to pay your outstanding debts. Because Texas allows bankruptcy filers to exempt up to $50,000 in personal property, your dog is probably not at risk.