What Happens to Pets in Bankruptcy?
There’s absolutely nothing fun about having to file for bankruptcy. People in this situation have found themselves in financial difficulty, often through no fault of their own. Bankruptcy proceedings are generally stressful, and, depending on the type of bankruptcy, may involve the loss of numerous possessions. It’s understood, of course, that creditors have the right to some level of compensation. Debtors know that they are in for some upheaval. But are they prepared to part with their pets?
Pets are Property
The fact of the matter is that from a legal standpoint, pets are property with a particular dollar value. But to many Americans, the idea of reducing their pet companions to a matter of dollars and cents is beyond comprehensible. Nevertheless, pets can be liquidated in order to satisfy the obligations they have to creditors. Troubling for many debtors, there are no provisions in modern bankruptcy law that exempts pets from this cold calculation, regardless of how beloved they may be.
Some may think certain animals, such as service dogs or emotional support pets, might be automatically excluded from these harsh rules. But there is no such luck. Even animals who serve a specific purpose beyond simply being cherished by a family may be sold in order to satisfy debts. In conjunction with that thinking, even former police dogs who’ve been retired and who have become pets to their handlers are merely chattel in a bankruptcy filing. These dogs are literally provided with a retirement pension to address veterinary bills, yet receive absolutely no protections when it comes to bankruptcy. They are simply considered “dumb living creatures,” who are worth a few dollars, to which creditors are entitled.
Do You Have to Disclose the Existence of Your Pet?
Most consumer bankruptcies are Chapter 7, which is commonly known as a liquidation. The debtor is obligated to list all property, and that includes pets. Failing to disclose property accurately could result in penalties.
It’s Problematic
The thing is, since pets provide their owners with comfort and love, losing them in the midst of a highly stressful period of time like during a bankruptcy seems especially cruel. As an asset, the pet must essentially be appraised to determine the market value. But how in the world can any appraisal include the value of a pet to its owner?
Helping You Through It
The experienced and empathetic Miami bankruptcy attorneys at The Law Office of Julia Kefalinos understand that bankruptcy is a last-ditch effort for people to get a handle on their finances. We always work to make the process as painless as possible. To discuss, schedule a confidential consultation in our Miami office today.
Source:
flsb.uscourts.gov/filing-chapter-7-case
