Do domain names need to be disclosed during a chapter 7 bankruptcy?
5 attorney answers
Yes, all property and rights to property should be listed on the bankruptcy schedules. Domain names can be quite valuable.
Several years ago we filed a chapter 7 for a man, and after the case was filed he received an offer to buy a domain name that he owned. I forget if it was $19,000 or $29,000, but we were able to exempt part of it using the federal exemptions and the trustee got the rest.
We are a debt relief agency and we help people file for relief under the bankruptcy laws.
Any intangibles or assets must be listed on matter what,, put down value zero or unknown.. See #22 and #23 on Schedule B of the bankruptcy documents required!
If you fail to list this asset, it is likely that the trustee will take it & sell it out from under you. If the domain name has a value to you, you should include it & exempt it. Hope this perspective helps!