Essential Tips for Listing Assets on Bankruptcy Schedule 106A/B

Professor’s Corner

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Welcome back to my series on how to complete and file the bankruptcy petition! I previously covered Official Form 106 (the Summary), which is crucial for catching red flags. Today, we’re reviewing Official Form Bankruptcy Schedule A/B, Property (individuals).

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This form is where you list every single asset you own, regardless of whether you think it’s protected or exempt, and intend to keep it.

Real Property. Know Your State’s Homestead Exemption

When listing real property, it’s not just about your primary residence. Identify the type of real property, such as a single-family home, duplex, timeshare, etc. Remember, not all real property is protected by homestead exemptions (e.g., a duplex used for income won’t be treated like your home and wouldn’t be exempt).

• Understanding the Bankruptcy Homestead Exemption

Valuing your home’s value is critical. How you value your property matters. In Florida, the County Property Appraiser’s Office valuation is used, which often drives down the price. However, in other states, different appraisal methods might lead to higher valuations, potentially creating non-exempt equity.

If you’re unsure, use PACER (pacer.gov) to look up local bankruptcy attorneys’ filings and see how they value property in your district.

• Using PACER for Bankruptcy Case Updates

Other Types of Real Estate

Timeshares: Trustees generally aren’t interested in timeshares due to their low value and ongoing expenses. Most often, they’ll be surrendered.

Cemetery Lots: While most states protect cemetery lots, some, like Florida, consider them land and thus potentially non-exempt. Trustees do take and sell cemetery plots, so be aware of your state’s specific property exemptions.

Motor Vehicles: Title is Key

You must list all vehicles you own, whether you’re keeping them or not.

For example, even if a car is in your name but driven and paid for by someone else (e.g., a child), it’s legally your asset because the law looks at the title. Adjustments for expenses can be made on Schedule J (monthly expenses) to reflect that you’re not making the payment.

To assign a value to the vehicle, Kelley Blue Book (kbb.com) is a common resource. If the value seems too high, consider getting a written estimate from a dealership pretending to sell the car. This can help reduce the declared value by accounting for wear and tear, minimizing non-exempt equity issues.

For non-working or low-value vehicles like old motorcycles or boats, list them, note their condition (“non-working”), and have photos ready if the trustee asks. Even if it’s been sitting in your backyard for a decade, it’s an asset the trustee will find when doing title searches.

Household Goods, Electronics, and Personal Items: Fair Market Value

This category includes everything from furniture and appliances to electronics, clothing, and firearms. To determine the Fair Market Value (FMV), it’s not the value that you paid, but what it’s worth today in a garage sale or on Craigslist. Be realistic; a five-year-old sofa isn’t worth what you paid for it.

Firearms: The Second Amendment grants the right to bear arms, but in bankruptcy, firearms are still assets that must be listed and can be subject to liquidation if not exempt.

• Second Amendment Rights and Bankruptcy: What You Need to Know

Pets: Generally, pets like your beloved cat, Fluffo, are not considered valuable assets by trustees unless they are a unique breed with breeding potential.

Cash: Always list any cash on hand, even a small amount.

Bank Accounts and Retirement Funds: Cautionary Tales

Bank Accounts: List all bank accounts, even recently closed ones (required on the Statement of Financial Affairs, “SOFA,”). Meticulously review bank statements for questionable transactions that a trustee might question.

Retirement Accounts (IRAs/Pensions): While often protected, transferring money from a protected retirement account into an unprotected checking account can make those funds vulnerable. If you’ve done this, transfer the money back if possible, or ensure it’s spent on legitimate expenses before filing.

Large, unexplained deposits from family or friends should also be spent gradually if you intend to file for bankruptcy, as a lump sum sitting in your account will be lost to the trustee.

Other Assets on Bankruptcy Schedule A/B

Security Deposits: Trustees typically don’t pursue security deposits, as their value is uncertain due to potential damages to the property. However, in a litigated case or if a lease is ending with a known refund, it could become an issue.

Tax Refunds: These are “low-hanging fruit” for trustees. If you expect a refund, the trustee will likely claim it.

Family Support: Include all domestic support obligations (child support, alimony), whether you’re receiving or paying. Be prepared to provide proof of marital settlement agreements if requested.

Insurance Policies: If a policy is linked to someone on their deathbed, the trustee will be interested as the proceeds become part of the bankruptcy estate. Inherited funds from insurance policies should be spent before filing.

Business Interests: If you’ve shut down a business or have an ownership interest in one (even if you’re a passive owner or it’s a spouse’s business), list any remaining assets (like inventory or equipment). Trustees will investigate if you’re listed as an owner, even if you weren’t actively involved, as any value could be considered a non-exempt asset.

The Importance of Reviewing the Bankruptcy Schedules

It’s incredibly easy to make mistakes when filling out these forms manually, as information doesn’t auto-populate like in software. Always double and triple-check your bankruptcy petition to ensure all numbers add up and there are no glaring red flags. This review is your best defense against trustee inquiries and avoidable complications.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The official form for Bankruptcy Schedule A/B is available via this link.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Updated initially on August 30, 2025.