Under the old law, Chapter 7 filers could value their property at what they could sell it for in a “fire sale” or auction. This meant that used furniture, hobby items, cars, heirlooms, and other property a debtor might want to keep were typically assumed to have little value — and, therefore, that it often fell well within the “exempt property” categories offered by most states. (Exempt property is property that cannot be taken by creditors or the trustee — you are entitled to keep it.)

Under the new law, you must value your property at what it would cost to replace it from a retail vendor, taking into account the property’s age and condition. This requirement is sure to jack up the value of property, which means more debtors stand to have their property taken and sold by the trustee.

Popularity: 1% [?]