Undervalued Exempt Property

[cz3ch]

I was reviewing my petition today and noticed a figure for 3100.00 which included appliances, a bed, and furniture. In my head I think the items would bring more like 5000.00 if I had time to sell them. When reviewing this with my current lawyer (I fired my last lawyer who put this figure in and screwed up a bunch of my numbers) he said the value would be if you had to sell it right away and most likely would be yard sale values.

I don't want to get in trouble for undervaluing my exempt property. Can someone give me a good rule of thumb to follow when trying to valuate items? My lawyer says using the yard sale rule is safe with most trustees (especially ours) but I want to be sure I'm not walking into a hornets nest regarding this item when I have my 341 meeting on 1/11/13.

Thanks in advance.

[salsa]

That is correct, yard sale prices is what you use.

[LadyInTheRed]

Yes, use yard sale value, especially if that's what your attorney told you to use. If the trustee doesn't agree with your valuation, you wouldn't be in a hornet's nest unless you were hiding something. The trustee would just send an appraiser to value the items. That is very unlikely to happen. The trustee probably won't ask anything about your furniture and appliances during your 341 unless you listed something that looks especially valuable.

[cz3ch]

Yes, use yard sale value, especially if that's what your attorney told you to use. If the trustee doesn't agree with your valuation, you wouldn't be in a hornet's nest unless you were hiding something. The trustee would just send an appraiser to value the items. That is very unlikely to happen. The trustee probably won't ask anything about your furniture and appliances during your 341 unless you listed something that looks especially valuable.

Thanks LITR. This is what I assumed. The previous lawyer I fired had me list the household furnishings of where I was living at the time. I've since separated and have a divorce pending. She listed the items as being owned by me when in fact it's my separated spouse's separate property. I disclosed this to the new attorney and he said to leave it in there, removing it may look suspicious.

My main concern was with valuation. I guess I'll just see if he even raises a question. That's all I can do.

Thanks for your feedback.

[keepsmiling]

Think about the last time you hit a garage sale. A sofa might have cost $50 tops. Dishes 10 cents a piece. Books 4/$1. Clothes .50-5 bucks each.
Most of us have a depressing moment when we realize how little our stuff is really worth

If you live in a mansion, your values may be suspect. Otherwise, no need to worry, unless you have an original Picasso on the wall.
Remember that if a tt has to sell them, it will be at a fire sale. He won't want to catalog, organize, price and wait for the right buyer.
Trust your attorney. He/she knows what's what in your district.