It is impossible to dispute that Texans love their dogs. In fact, the state is home to more than 7 million pooches. If you have a furry friend in your home, you probably cannot imagine life without your favorite pet. As such, the thought of losing your dog during bankruptcy is probably enough to make you shudder.
Drowning in a sea of unmanageable debt is no way to live. Filing for bankruptcy protection may be an effective way to get your financial situation under control. Of course, you do not want to have to give up the things you most love. Fortunately, you probably do not have to worry about surrendering your companion animal.
Your dog is an asset
Whether you intend to file for Chapter 7 or Chapter 13 bankruptcy protection, you must inform the court of all your assets. To do so, you complete a financial disclosure form. Like your home, car and personal belongings, your dog is an asset. Therefore, you must list your pet on your financial disclosure.
Some of your assets are probably at risk
Depending on which form of bankruptcy you choose, you may have to sell some of your assets to pay outstanding debts. Because your dog is an asset, the bankruptcy trustee may try to sell it. That usually does not happen, though. Put simply, the effort and cost in selling most companion animals far outweigh the financial benefit to your creditors. On the other hand, if you have a particularly valuable dog, such as a pedigreed show winner, the bankruptcy trustee may want to sell your pet.
While you may worry about retaining ownership of your pet after filing for bankruptcy, getting your debt under control is likely a top priority. If bankruptcy is the right course of action for managing your financial situation, you should not worry much about losing your dog. Still, understanding how bankruptcy is apt to affect all your assets is an effective strategy for making an informed financial decision.