None of us like to think of our beloved pets as personal property, but, in the eyes of the law, that's exactly how they're viewed. For those considering bankruptcy, this raises a crucial question: what happens to pets in a bankruptcy filing? Below, Attorney Jeremy Bueker of the Bueker Law Firm in Stuttgart, Arkansas, answers this question in detail.

Chapter 7

Most consumers file one of two main types of bankruptcy, Chapter 7 or Chapter 13. Under Chapter 7, unsecured debts are eliminated by the courts, but, first, the filer has to submit a thorough inventory of their assets. And pets are an asset that must be claimed on Line 13 of Schedule A/B. When listing their value, always enter $0. In all honesty, the bankruptcy courts are not interested in taking the average dog or cat away from a filer.

But where there is a general rule, there is always an exception. Those who make money off their pets, such as an animal breeder or a professional who shows horses, will face an additional roadblock. In all likelihood, the courts won't try to repossess the animal, but you and your bankruptcy attorney may have to negotiate an alternative. One option? File Chapter 13 bankruptcy instead.

Chapter 13

Chapter 13 is a debt reorganization that consolidates your outstanding balances into one monthly payment, to be repaid over the long-term. When a person files for Chapter 13, they can keep all assets, exempt and nonexempt, so long as they can stay current on what they owe in addition to their monthly repayment plan. If you can keep up with the expenses to maintain the pet, you can retain ownership through a Chapter 13 filing.

The issue for many Chapter 13 filers is the expense associated with the pet, especially in cases where the animal is exotic, has special needs, or is in any way costlier than normal to maintain. If these expenses are so high as to be prohibitive and prevent you from making the required Chapter 13 payments, some negotiation with the courts may be necessary. Again, the court is probably not interested in repossessing a pet, so be willing to work with them to see if other options are available.

Make sure you keep a treasured pet where they belong: at home with you. Let Chapter 7 and Chapter 13 bankruptcy lawyer Jeremy Bueker at Bueker Law Firm help. For over 14 years, he has been helping area clients find lasting debt relief solutions. Call (870) 673-1313, visit his firm's website, or contact him via Facebook to arrange a free consultation today.