Oliver & Legg
Call today for a free consultation

Blog

Can the bankruptcy court make you sell your cat?

On Behalf of | May 27, 2022 | Chapter 7

If you are a cat owner, you know just how much your feline friend brings to your life. In addition to giving you some much-needed company, your cat improves your mental health. In fact, according to Psychology Today, simply being around a companion animal tends to reduce both anxiety and depression.

Anxiety and depression, of course, are common among those who have financial troubles. If you are struggling to stay on top of your debt, filing for bankruptcy may also enhance your mental well-being. Still, you simply are not willing to part with your cat.

Bankruptcy liquidation

With some types of bankruptcy, you must liquidate certain assets to pay off your creditors. After you do that, the bankruptcy court discharges many or even all of your remaining debts. Because your cat is an asset under the law, it is theoretically possible for the bankruptcy court to force you to sell the animal. That probably will not happen, though.

Your cat’s value

It is perfectly acceptable to believe your cat is the most precious animal on the planet. You can even think your kitty is priceless. The bankruptcy court is likely to see things differently, however. Indeed, the cost to acquire, shelter, feed and otherwise care for your cat probably significantly surpasses any proceeds the animal would bring at a sale.

Even if the bankruptcy court decides it wants to sell your cat, you may have a fail-safe. That is, you may be able to keep the animal by using one of the many bankruptcy exemptions.

Ultimately, because the sale of your cat is exceedingly unlikely, you probably do not have to worry about losing the animal when filing for bankruptcy.

Archives

FindLaw Network