Value of artworks for ch.7 bk

[dina13]

Here is a current update. We talked with lawyer, and he advised us to get an appraisal of liquidation value of artworks. We got an appraisal of my husband's works - over 300 pieces of different sizes and mediums. The liquidation value of all is under $15,000 - which will be totally covered by his personal property exemption and a share of homestead exemption. So I believe we'll be in good shape.

[AngelinaCat]

Congratulations!!! That sounds like great news!!

[dina13]

Thanks, AngelinaCat, it is a great news indeed!

[btbeme]

Here is an awesome coincidence...

I attended a 341 this week where the artist wife was in much the same situation - her portfolio of unsold works was under a valuation question. Her straight-faced reply was that the Trustee was welcome to the paintings so long as he didn't white-out her signature or devalue her established market by dumping them for cents on the dollar. The Trustee then asked if he should instead be more concerned with the market value of her client list since the value of her work was determined by their willingness to pay. Her reply - "I'd simply switch to painting murals, since they are of no value to anyone but the owner of the wall." After a moment the Trustee smiled and wished her good luck with her "hobby."

Saucy. Dangerous. Brilliant.

[ValleYum]

Ooooo what a brilliant story, btbeme, but also an important point for Dina to ask her attorney about! Does she (or hubby) have a client list? If they do, should it be listed as an asset?

[dina13]

No, we do not have a client list. We've been selling through a gallery, and after business became really slow there, we literally haven't sold anything in the past year and a half. We currently just have three private students, and make a living by teaching art.

[ValleYum]

No, we do not have a client list. We've been selling through a gallery, and after business became really slow there, we literally haven't sold anything in the past year and a half. We currently just have three private students, and make a living by teaching art.

Cool! One less thing to worry about!!

[Tater]

Dina,

Thanks for the update and sharing your good news with us! I am happy things are working out for you and your husband!!

[TomTea31]

how would a client list be of any use to the Trustee? He can't make her paint for him. I guess I don't get how a client list, of a painter, could be of any value to a Trustee unless he knew how to paint?

[btbeme]

Client lists, in many cases, hold tremendous value to a business. Imagine a contractor, or a dentist, or even a carpet cleaner being given the chance to purchase the client list of a bankrupt competitor. That list has value.

To your point, an artist is something of a unique provider unto themselves, as you could not substitute another artist for their work the way you could easily accept a different carpet cleaner. In this case I believe the Trustee was being somewhat facetious. I just thought it an interesting coincidence as well as a great reply by the petitioner.