Valuing Personal Property in Missouri
If you are filing Chapter 7 bankruptcy, it may be possible to redeem some of your personal property that was seized during the bankruptcy process. Redeeming the property means that you can buy it back for less than the balance you owe on the item.
You must adhere to the guidelines of the 722 redemption section of the Bankruptcy Code. Working with an experienced bankruptcy lawyer may be helpful during this process. For a free consultation, please call our St. Louis area office at 314-262-4390 or contact us online.
Vehicles and Other Personal Property
The 722 redemption program allows people filing for Chapter 7 to redeem personal property by paying the creditor what the items are worth in their current condition, which is typically less than you owe on the balance of the loan. This is not the amount that you would spend to replace these things with new items; it is the amount you would receive if you sold them today.
To value your personal property, you must estimate its current used value. This includes its age, wear and tear, and how outdated it may be. You can determine this amount by looking at comparable items at yard sales, garage sales, consignment stores, Goodwill or on eBay. Remember that unless the item was new when it was seized, you are looking at similar used items. The valuation must not be based on retail value but on what you could sell it for today.
Personal property that is often redeemed includes items such as:
- Furniture
- Electronics
- Art
- Collectibles
- Memorabilia
- Recreational equipment or vehicles
- Books
- Clothing
You may also be able to redeem your vehicle for less than the balance of your auto loan. Generally, Kelly Blue Book or NADA values are acceptable for estimating the vehicle's value.
For any property you redeem, you are usually required to pay the amount in full within 30 days of the judge's order. To make an appointment to discuss property redemption, please call our attorney at 314-262-4390.
