A lot of questions from new bankruptcy filers can arise about filling out Form B6B for filing a chapter 7 bankruptcy. The form is generic and appears to ask for detailed information in a very small space. How should a filer handle this?
The Purpose for Form B6B when Filing a Chapter 7 Bankruptcy
To answer the question, it is important that a filer understand the purpose for Form B6B when filing a chapter 7 bankruptcy. A chapter 7 bankruptcy is often called the liquidation bankruptcy because a bankruptcy trustee will liquidate any non-exempt assets in order to pay your creditors whatever he can from what has been received from liquidating the qualifying assets.
When petitioning a bankruptcy court, bankruptcy laws require that a filing debtor list all their assets owned and the asset’s value on Form B6B. Form B6B itemizes 35 different categories of assets having two columns, one asking for a brief description of the assets and the other asking for the current value of the assets.
From Form B6B, the bankruptcy court can determine what the qualifying assets might possibly be. They compare the total assets with the assets you are claiming exempt by filling out Form B6C. Form B6C assets are the assets you own that should be exempt from liquidation as described by either federal or state bankruptcy laws.
How to Itemize Form B6B Assets
Everyone listing assets for Form B6B does so differently. There are probably no two Form B6B papers filled out exactly the same, but all have the same 35 categories listed on the form. It might be most practical to list your assets and projected values on a different sheet, maybe using a spreadsheet, and group them according to how they are grouped on Form B6B.
That way, when you are filling out Form B6B you can lump your prices together and list only a few of the more valuable items you itemized to show the trustee the content of the category, and then close the listing with something that applies like “and other miscellaneous household items.” Keep your spreadsheet itemization to prove what you have done in case the bankruptcy trustee asks.
Normally, bankruptcy trustees are looking for large non-exempt assets they can liquidate quickly. Small and numerous items are usually not worth their effort. That is why it is not too important to stress out over Form B6B like many new filers often do.
List all of your assets as honestly as you can and use current market value in the valuation of them. The market value can be what you can get for the assets in the condition they are in, which can include garage sale pricing. Unless an item is highly valued like a house or automobile, there is normally no need to get appraisals made on them.
Sometimes Form B6B May Require Professional Assistance
There are times when some new bankruptcy filers have enough assets, often in a small business, where they want to file a chapter 7 bankruptcy. Many of these filers will most likely want professional assistance in the form of an experienced chapter 7 bankruptcy attorney when filling out Form B6B. Bankruptcy exemptions laws can be complicated when there are numerous non-exempt assets involved.
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