If having too much debt has caused your stress levels to skyrocket, you probably appreciate having a dog by your side. After all, according to Johns Hopkins Medicine, companion animals reduce a person’s production of certain stress hormones. Still, proactively dealing with your debt is a better long-term approach to lowering your stress.
Filing for Chapter 7 bankruptcy protection is one of the more popular ways to do away with excessive amounts of debt. Indeed, with this type of bankruptcy, you sell some of your assets to pay off what you owe to your credits. The bankruptcy court then discharges many or all of your remaining balances.
Is your dog a disclosable asset?
When you begin the Chapter 7 bankruptcy process, you must disclose all your assets and liabilities. This means you have to tell the court about everything you own and owe. Because your dog is an asset under the law, you must disclose the animal and estimate its value.
Is your dog valuable?
Even though your dog is probably priceless to you, the animal likely is not worth much to the bankruptcy court. This is especially true when you consider the cost of housing, feeding and providing medical care to the animal. Therefore, the bankruptcy court is unlikely to have much interest in trying to sell your dog.
If your dog is a high-value one, though, it may be possible to lose the animal during Chapter 7 bankruptcy. Ultimately, though, you can probably use a bankruptcy exemption to keep your dog in your life and out of the hands of the bankruptcy court.