If you are between the ages of 40 and 55, there is a good chance you have acquired substantial debt. In fact, according to reporting from CNBC, the average Gen Xer currently owes roughly $186,000. Even if you have a good job and earn a decent wage, paying off your outstanding debt may seem virtually impossible.
Exploring debt-relief options, such as a Chapter 7 bankruptcy filing, may help you do away with many of your debts. With this type of bankruptcy, you typically sell certain assets to pay off credits. Then, the bankruptcy court eliminates any debts that are dischargeable.
What is an asset?
When you seek Chapter 7 bankruptcy protection, you must disclose all your assets. Assets include everything you own, such as your home, car, furnishings and personal belongings. Despite being a living animal, your dog is an asset that requires disclosure.
Does your pet have value?
To you, your dog is probably invaluable. To the bankruptcy trustee, though, your pup is probably much more of a liability. That is, the expense of taking, housing, feeding and caring for your dog is likely to greatly outweigh any profit the animal would bring on the open market.
Can you put your mind at ease?
If your dog is a high-value, pedigreed show winner, the bankruptcy trustee may try to take and sell the animal. While this risk is minimal, bankruptcy exemptions may put your mind at ease. Specifically, if you can fit your dog into one of the many exemptions, you probably can keep it. This is true regardless of what the trustee wants to do.
Ultimately, because your financial future is important to your personal well-being, you should not let the small possibility of losing your dog discourage you from getting your debt under control.
