Constantly struggling to stay on top of your huge pile of debt can take an almost unbelievable toll on your mental health. Indeed, according to Psychology Today, having too much debt can make you both angry and anxious. Owning a dog may help you maintain good mental health.
Even though pursuing bankruptcy is likely to alleviate some of your financial stress, parting with your dog may bring on sadness, depression and additional anxiety. Luckily, you probably do not have to worry about the bankruptcy trustee trying to sell your dog.
The liquidation process
As you may know, Chapter 7 bankruptcy requires you to sell some of your assets. The purpose of this sale is to pay off as many of your creditors as possible. After you sell certain assets, the bankruptcy court eliminates most or all of your remaining debts. depending on whether they are dischargeable.
Your assets are everything you own, including your dog. Consequently, it may be theoretically possible for the bankruptcy court to sell your furry friend. In reality, though, that is exceedingly unlikely.
The cost to house and care for your dog is likely to be substantial. In fact, it is likely to far surpass the dog’s eventual sale price. Accordingly, the bankruptcy trustee is likely to focus on selling other assets instead of going after your dog.
If you need additional assurance, the bankruptcy exceptions probably give it to you. That is, if the bankruptcy trustee tries to sell your pup, you may be able to keep the animal by using one or more of the bankruptcy exemptions.