Asset Calculation Question

[eltaur2000]

May assets are....

5k Watch that I paid 7400 (Paid 5k and put 2400 on another Visa card)

Secured.....
6k (Worth about 4k now) in Furniture that I owe 3k to The Room Place
6k (Worth about 3-4k now) in TV's & Appliances that I owe 3k to Best Buy

When calculating equity for liquidation do I subtrack what I owe?

Example....

Watch 5k - 2400 total equity $2600
Furniture 4k - 3k total equity $1000
TV's & Appliances 6k-3k total equity $3000

That will be a total of $6,600 in equity???
Im not planning to surrender any secured debt. I'm going to pay the entire debt to keep my stuff.

[HHM]

Let's back up for a second.

First, I don't know of ANY used furniture that is worth 1K, let alone 6K.

So let's start with basic valuation, you need to determine what you could actually sell these items for. I don't care if you just bought a $2,500, 55" 3d LED T.V., you would be lucky to get $500 for it if you tried to sell it. So, I think you need to go back and rethink your valuations. Think garage sale value/craigs list value.


The watch is probably the only one that still has some meaningful value (but think pawn shop value), the rest you'd be lucky to get $2K for everything, the furniture, TV and appliances.

[eltaur2000]

Let's back up for a second.

First, I don't know of ANY used furniture that is worth 1K, let alone 6K.

So let's start with basic valuation, you need to determine what you could actually sell these items for. I don't care if you just bought a $2,500, 55" 3d LED T.V., you would be lucky to get $500 for it if you tried to sell it. So, I think you need to go back and rethink your valuations.


The watch is probably the only one that still has some meaningful value, the rest you'd be lucky to get $2K for everything, the furniture, TV and appliances.

Great information....

Back to my original question???

So let's say my furniture is wortk total 1k If I wwas to try to sell it.....

If I still owe 3k to The Room Place for that furniture is it considered under water "0" luquidation value?

Or is it considered as having 1k in liquididation value even thou I still owe 3k in a secured debt that I'm going to pay back at 100% to the room place?

[HHM]

You probably don't want to deduct the secured amount. These sorts of "security" interests, although real, are treated as unsecured debts.

[eltaur2000]

Ohhhhhh.....

That's why I love this forum. So truly my only secured debt is my House and Car?

If I submmit these as unsecured then I will have to report the liquidity amount as an asset coorrect?

It just seems like it they will be double dipping If I'm paying for them full price and they are also being used for liquidity confirmation.

Do you think that the stupid watch is the only true liquid asset that I own?

The rest of the stuff is owed. I guess I'm confused now.

Best Buy and The room place

Is that secured or un secured debt.

[lillymarlene]

eltaur, you may still want to check Craigslist and eBay to see what an identical or similar watch would sell for. You could also see what a pawn shop would pay for it. For almost everything there is a big difference when buying something new, and it's "second hand" resale value.

[eltaur2000]

eltaur, you may still want to check Craigslist and eBay to see what an identical or similar watch would sell for. You could also see what a pawn shop would pay for it. For almost everything there is a big difference when buying something new, and it's "second hand" resale value.

This is great advice. Pawn shop value is always eye popping low.