FORM 6 - REAL & PERSONAL PROPERTY

Federal bankruptcy laws require all individuals initiating either a Chapter 7 or Chapter 13 bankruptcy case, to disclose all personal property owned by them as of the date of their bankruptcy filing; and to further disclose the value of all such personal property.  The following form is designed to assist you in making such disclosure. 

In Chapter 13, you are permitted to retain all of your real and personal property.  In a Chapter 7 case, many items of  property are exempt and  cannot be taken if you file  bankruptcy (see "Property You Can Keep in Bankruptcy" on this site).  However, if you own non-exempt assets of significant value, you will likely be required to turn over those assets in a Chapter 7 case.  If you own assets which could be subject to risk of loss in a Chapter 7 case, you should file a Chapter 13 case to preserve your assets. 

VALUATION.  THE VALUE YOU SHOULD ASSIGN TO YOUR ASSETS IS YOUR OPINION OF THE PRICE YOU COULD OBTAIN FOR YOUR ASSETS BY PUTTING AN AD IN THE NEWSPAPER OR HAVING A YARD SALE.  The purchase price DOES NOT reflect the actual fair market value of your assets.  As a general rule, personal property depreciates about 20-25% per year.  Therefore, for example, property purchased two years ago would now be worth about half as much as you paid for it; and property purchased three years ago would now be worth about one-fourth of what you paid for it.  This is a very general rule of thumb, however, and many factors can impact the value of an asset such as its condition which could affect value positively or negatively, damage or excessive wear and tear, or in some cases, appreciation in value such as with antiques. 
Your bankruptcy attorney will review your completed form with you in detail at the time of your office consultation and ask additional questions regarding property not included on this form.   Individuals generally have many questions concerning property and exemptions; and these issues are often complex in bankruptcy cases.