Filing for bankruptcy means listing and accurately valuing everything you own. Learn how to price your household goods, jewelry, art, and vehicles the right way.
Bankruptcy law values your personal property at “replacement value,” which is the price a retail merchant would charge for the item, given its age and condition. You must list every item you own, along with its replacement value, on Schedule A/B: Property as of the date you file, and the best way to arrive at that number depends on the type of item. If you own something jointly with another person, you'll list both the item's total value and your share of its value. (11 U.S.C. § 521.)
Here's a quick look at how to value the most common categories of personal property, followed by more detail on each one.
| Property Type | Best Way to Value It | Where to Get It |
|
Household Goods and Furnishings |
Secondary marketplace value for similar age and condition |
Craigslist, eBay, or a local thrift shop |
|
Automobiles and Other Vehicles |
Retail replacement value |
NADA, Kelley Blue Book, or a CarMax dealer |
|
Furs and Jewelry |
Written appraisal |
A licensed appraiser or estate property dealer |
|
Works of Art |
Appraisal, or the amount you paid |
A reputable art dealer, auctioneer, or licensed appraiser |
Household Goods and Furnishings
The best way to value household goods and furnishings—furniture, electronics (including computers, TVs, and audio and video equipment), silverware, and other miscellaneous items found in your home—is to check the secondary market value on sites like Craigslist or eBay. Look for the average asking price of items similar in age and condition to your own.
Keep records of the dates and places from which you arrived at these values, in case the trustee asks for documentation. As a practical matter, very old and worn-out household items generally have little value.
Automobiles and Other Vehicles
Typically, you can get your vehicle's replacement value from NADA, the Kelley Blue Book, or your local CarMax dealer. Learn more about keeping a car in bankruptcy.
Furs and Jewelry
The best way to value furs and jewelry is to get a written appraisal from a licensed appraiser. Many estate property dealers are licensed and qualified to appraise assets for bankruptcy purposes.
If an item is unusual or especially valuable, obtaining a written appraisal will show that you’ve valued your property accurately and in good faith. The appraiser should assess the property's value based on today’s market, given the item's age and condition.
It's usually not a good idea to get appraisals from pawn shops or use appraisals written for insurance purposes. Pawn shop values tend to run low, and insurance appraisals tend to run high, so neither one reliably reflects the Bankruptcy Code’s replacement value standard.
Works of Art
Appraise your artwork through a reputable art dealer, auctioneer, or licensed appraiser if you're unsure of its value. Art can range from very valuable to worth little or nothing, and what you originally paid for a piece is often a reasonable starting point for its current value.
Your Duty to Disclose Property Values
The bottom line is that you must value your property honestly and disclose everything you own. Also, keep your documentation. You sign your bankruptcy schedules under penalty of perjury, so you have a legal duty to disclose all of your assets and their values, truthfully and completely. The trustee can question you about your property at the meeting of creditors, held about a month after you file. Failing to disclose your property truthfully can lead to fines, penalties, or a loss of your discharge. (11 U.S.C. § 727.)
Next, learn more about what happens to your property in bankruptcy to see what happens to your assets once you file.
