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Subject: Cancellation of debt - What is considered an asset?

Cascade, IA |

Example: I have a $200,000 Mortgage for my primary residence and I've listed it as a debt on my insolvency worksheet. Would I also list the same home in the asset section based on Fair Market Value?

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Attorney answers 3

Posted

Yes. The fmv is the asset's value. The mortgage is the debt against the asset. The difference between the two tells you whether you have equity or not. The same as with a car (if there is a loan outstanding).

Posted

Yes, you would. You must list all assets that you own on your bankruptcy, regardless of whether or not the property has any equity (fair market value less any outstanding liens).

List both the outstanding debt and the assets' fair market value on your schedules.

Good Luck!

Posted

Yes.

Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.

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