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Your pets might be part of the family, but in the eyes of the law, they’re considered assets because they're technically personal property. Since caring for them costs money, however, they're also an expense. This can make it challenging to categorize pets correctly when discharging debt. Fortunately, a bankruptcy attorney can help. Here, Greg Dunn, Bankruptcy and Debt Relief Attorney in Honolulu, HI, explains what can happen to pets during the proceedings.

Chapter 7 Vs. Chapter 13

Those who file for chapter 7 must disclose all pets in the official petition. But this does not mean the trustee will sell them to pay back creditors. In most cases, you can list the value of your pets as $0 and retain them even after discharging all applicable debts.

In chapter 13 bankruptcy, on the other hand, pets may pose an issue if their cost of care is considered unreasonable. The court wants to see you pay off as much debt as possible using all available disposable income. If your pets are relatively expensive to keep, a bankruptcy attorney will help you negotiate for an agreement that allows them to remain part of the family. 

If Your Pets Have Tangible Value

bankruptcy attorneyMost families have typical household pets that do not hold any tangible value in the eyes of the court; however, if you have a prizewinning show dog, for example, or a racehorse worth a small fortune, you may have to turn it over to the trustee when liquidating nonexempt assets in chapter 7. If you’re determined to keep these pets and their cost of care is reasonable, you may be able to do so by filing chapter 13. 

If you’re in over your head financially and need a fresh start, turn to Greg Dunn, Bankruptcy and Debt Relief Attorney. During his more than 25 years of experience, Greg Dunn has helped clients across Hawaii discharge millions of dollars. He is well versed in both chapter 7 and chapter 13 bankruptcy in addition to foreclosure defense and debt settlement. To schedule a free initial consultation with this bankruptcy attorney, call (808) 524-4529. Visit his website to learn more about his services.

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