Bankrupt Debtor Who Own an Animal(s)
A debtor in bankruptcy is required to list animals as assets on the bankruptcy schedules filed with the court. In chapter 7 bankruptcy if the animal is not exempt then it is possible for the animal to be sold just as any other asset would be sold. That having been said, that would be an unusual situation where the animal had significant resale value. Despite the value to the owner, most dogs, horses and cats do not have significant resale value. If the debtor is concerned about the possibility of an animal being sold then a reorganization chapter such as 13 or 11 may be more appropriate.
Actual expenses related to animal ownership should be noted on the budget portion of the bankruptcy schedules. The Means Test form which most above median income debtors must complete does not allow the debtor to deduct expenses for pet ownership. It is unclear if or how expenses related to animal ownership will impact a particular case.
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For more than 20 years, the Sasser Law Firm has been helping individuals and business owners sort through financial hardships to see the light at the end of the tunnel. Our North Carolina bankruptcy attorneys are all board-certified specialists, which means we have passed a complex exam, undergone a thorough peer review, and continue to earn legal education credits in this ever-evolving area of law.
