How do I value personal property on schedule B if I'm filing for chapter 7?

In theory, you value personal property on Schedule B the same exact way you would value real estate: at the current market value. This is more easily determined for some personal property, such as vehicles, artwork, or jewelry, where there is a market for them and a market value can more easily be derived. It’s more difficult for clothing, cookware, dishes, etc.—items that are not typically purchased used and so which don’t have a robust market setting prices.

Simplifying matters is that under the bankruptcy law, the debtor can exempt certain property from being considered part of the bankruptcy estate. For example, up to $8,000 total of household furnishings, household goods, appliances, clothing, books, etc. can be exempted. For many people declaring bankruptcy, this exemption will take in all of these items, so unless they have particularly expensive furniture (antiques or collectibles) or high-end kitchen appliances, they can essentially value all those items at $0—they fall under the exemption.

Valuing property is an art, not a science. If someone either has high quality or an unusually large number of items in some category (or both), creditors could challenge the valuation and it will be resolved during the bankruptcy process. However, to begin with:

• Anything that has an easily determinable market value, like a car, jewelry, artwork, ATV or RV, etc. should be valued at that level. Then subtract from its value any amounts the law lets you exempt. (For example: a debtor declaring bankruptcy may exempt up to $2,400 of value in one vehicle.)
• Items that do not have a readily determinable individual value should be lumped together in categories, a good faith estimate or guess taken of their value, then the value of the relevant exemption deducted. In many cases, this will result in a net value of $0.

Properly valuing property, contesting any challenges to valuation, and properly applying exemptions are all areas where the assistance of counsel can be invaluable.

Talk to a Bankruptcy Lawyer about your case. You may find that having professional representation can help you keep most or all of your property while eliminating your debts.