Since filing for personal bankruptcy requires listing assets, it’s not uncommon for people to worry about their pets. Dogs, cats, and other pets fall under the “personal property” category; however, they shouldn’t influence your decision to file. Learn how pets factor into personal bankruptcy filings and why they can potentially help your case.

Pets & Chapter 7 Bankruptcy

When you file for Chapter 7 bankruptcy, you must list every asset you own on the Schedule B form, including all properties, vehicles, and valuable art and jewelry.

While assets of value are repossessed during Chapter 7 filings to help pay your creditors, there is little risk of a pet getting sold. Dogs, cats, birds, hamsters, and reptiles aren’t viewed by bankruptcy estates and creditors as items of value because they typically aren’t worth thousands of dollars. Even if you own a prize-winning poodle or Persian cat, it’s unlikely the creditor will pay much notice. You can safely list your pets knowing they will be exempt from asset repossessions.

Animals related to business are sometimes exceptions. Herds of cows and other farm animals aren’t usually considered pets but rather livestock. Depending on the age and number of farm animals you own, they may be considered valuable assets.

Pets & Chapter 13 Bankruptcy

Since filing for Chapter 13 requires making payments over a 36 to 60-month period, you must work with your creditors to determine how much you can afford each month. It’s possible to list pet care as an expense so long as the monthly amount isn’t exceptionally high. Most dogs and cats are listed for around $80 and $30 a month, respectively, though the numbers can be higher or lower. As long as you list pet care for a reasonable amount, you won’t deal with disputes.

Monthly pet care also benefits Chapter 7 filings because too few expenses can result in switching to Chapter 13 on grounds of “bad faith.” You’ll end up making creditor payments over three to five years instead of liquidating your assets. 

Discuss the best personal bankruptcy filing for your pets and financial needs with Donald L. Spafford Jr., Attorney at Law. The bankruptcy attorney has over 30 years of experience serving clients throughout Honolulu, HI, and the surrounding areas, offering personalized solutions for home and business owners. Call the attorney today at (808) 532-6300 to schedule a free consultation, or visit the website for a complete list of practice areas.