How to value your pets in a bankruptcy

If you are filing a Chapter 7 bankruptcy you will have to put a value on every single thing you own. What most people don’t realize is that this also includes their pets. Even if the only pet you have is a 3 legged iguana, you still have to decide how much it’s worth and include it in your bankruptcy filing.Once you’ve filed your bankruptcy petition you’ll be assigned a Trustee whose job it is to sell any of your assets that are not exempt in order to pay your creditors. Exemptions are the lists of the kinds and values of property that are protected in a bankruptcy and so cannot be taken by your trustee or creditors. Since exemption limits vary by state, you’ll have to check your local rules before determining if Fluffy is exempt.To most people, their pets are priceless, but your trustee will want to know if they can be sold for more than the exemption limit. Unless your pet is a young, registered, purebred, rare, show animal and you have the breeding rights, it’s unlikely that he or she will be worth more than the exemption limit. More often than not you can get an accurate reflection of how much your pet is worth by looking at similar animals listed on Craigslist or at the local animal shelter. Remember to take into account the animal’s age and condition just as you would with any asset. For instance, an older dog will be worth less than a puppy and a hamster with mange will be worth less than one without.The most important thing is to make sure that you include your pets and a good faith estimate of their value.