If you count your dog as a treasured member of your family, you undoubtedly already know the many mental health benefits that come with owning a companion animal. Still, if you are struggling to stay on top of mountains of debt, the stress you feel may be too much for your pooch to make much of a difference.
Depending on the type of bankruptcy you choose, you may either be able to discharge many of your debts or structure a reasonable repayment plan. Sometimes, though, you must part with certain assets during the bankruptcy process. Are you at risk of losing your dog?
Asset disclosure
When you file for bankruptcy, you typically must disclose all assets you own. Even though your dog is a member of your family, the animal is an asset that probably requires disclosure. Consequently, you must inform the bankruptcy trustee about your dog and assign a value to your pet.
Risk assessment
While your dog is likely invaluable to you, the animal is probably not worth much to the bankruptcy trustee. That is, the cost of taking and selling your dog is likely to outweigh any benefit the trustee would realize from requiring you to part with your pooch.
An exception
While bankruptcy trustees usually have little interest in family pets, there is an exception you should consider. If your animal has considerable value, like a blue-ribbon pedigree, the trustee may seek to sell the dog. Even if that happens, the pup may fit into one of many bankruptcy exemptions.
Getting your debt under control is likely to be good for everyone in your family, including your dog. Ultimately, you probably do not have to worry about losing your dog during bankruptcy.
