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

Asked 11 months ago - 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?

Attorney answers (3)

  1. Anthony Matthew Vassallo

    Contributor Level 13

    2

    Lawyers agree

    Answered . 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).

  2. Dwayne M Farnsworth

    Contributor Level 14

    Answered . 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!

  3. Diane L Gruber

    Pro

    Contributor Level 18

    Answered . Yes.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more

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