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 will prompt you with regard to the kind of detail you are required to disclose concerning your personal property.

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 give those assets to the Chapter 7 Trustee assigned to your case for safe distribution to your creditors. Such assets could be preserved in a Chapter 13 if you qualify to file Chapter 13 (i.e., if you have financial ability to fund a Chapter 13 Plan).

VALUATION.  The value you should assign to your assets is based REPLACEMENT VALUE of such assets, without deducting the cost of sale or marketing. To the extent your property was acquired for personal, family, or household purposes, "replacement value" is defined in the U.S. Bankruptcy Code as "the price a retail merchant would charge for property of that kind considering the age and condition of the property at the time value is determined." i.e. what could a retail merchant such as RC Wiley charge for  your used sofa.

The purchase price DOES NOT reflect the replacement value of your asset..s. As a general rule, personal property depreciates about 20-25% per year. There fore, for example, property purchased two years ago would now be worth 40-50% 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 condition which could affect the value positively or negatively, damage or excessive wear and tear, or in some cases, appreciation in value such as with antiques.