How to Value Your Property on Bankruptcy Schedules

What number actually goes in the value box?

Schedule A/B: Property (Official Form 106A/B) asks for the current value of the entire property and the current value of the portion you own. The form instruction is blunt: do not deduct secured claims or exemptions. The mortgage goes on Schedule D: Creditors Who Have Claims Secured by Property; the exemption you claim goes on Schedule C. Mixing those together is the single most common error, and it produces schedules that do not add up.

So a house worth $300,000 with a $200,000 mortgage is listed at $300,000 on Schedule A/B, not $100,000. The equity math happens later, on other forms. For personal property that secures a claim in a Chapter 7 or Chapter 13 case, 11 U.S.C. § 506(a)(2) sets the standard as replacement value as of the petition date, without deduction for costs of sale or marketing.

• List an asset only once, in the category where it fits best.
• Answer every question, including the ones where the answer is "no".
• Report the portion you own — a half interest in a jointly owned car is a half interest.

What does "replacement value" mean for household goods?

For property acquired for personal, family, or household purposes, 11 U.S.C. § 506(a)(2) defines replacement value as the price a retail merchant would charge for property of that kind, considering the age and condition of the property at the time value is determined. Read that carefully, because the two qualifiers do most of the work.

"Property of that kind" means a comparable used item, not a new one. "Age and condition" means a nine-year-old sofa with a torn cushion is not priced like a showroom sofa. The practical question is what a used-goods retailer would ask for your actual couch, in its actual state — not what you paid for it, and not what a liquidation auction would fetch.

The statute also says no deduction for costs of sale or marketing. You do not shave the number down for what it would cost to sell the item. Most people's household goods, valued this way, come to far less than they fear.

What is my car worth for bankruptcy purposes?

A vehicle is personal property, so if it secures a car loan in a Chapter 7 or Chapter 13 case, 11 U.S.C. § 506(a)(2) applies directly: replacement value as of the filing date, without deduction for costs of sale or marketing. In practice that points toward what a dealer would charge for the same year, make, model, and mileage in the same condition — not private-party quick-sale value, and not trade-in value.

Schedule A/B asks you to identify each vehicle by make, model, year, and approximate mileage, and gives space for other information. That detail exists so your number can be checked against the same car. Use it. Note real condition honestly: body damage, a failing transmission, bald tires, and high mileage are all part of "age and condition," and a vehicle in poor shape is worth less than a clean one.

Watercraft, motor homes, ATVs, trailers, and motorcycle accessories are listed separately in the same part of the form.

• Record make, model, year, and mileage before you look up a price.
• Value the car in its real condition, not its best-case condition.
• A leased vehicle also goes on Schedule G: Executory Contracts and Unexpired Leases.

What does federal law say about valuation?

Three provisions do the work. 11 U.S.C. § 521(a)(1) requires the debtor to file a schedule of assets and liabilities, along with a list of creditors, a schedule of current income and expenditures, and a statement of financial affairs. That is where the duty to disclose comes from.

11 U.S.C. § 506(a)(2) supplies the standard for personal property securing an allowed claim in an individual Chapter 7 or Chapter 13 case: replacement value as of the petition date, with no deduction for costs of sale or marketing, and the retail-merchant test for personal, family, or household goods. 11 U.S.C. § 522(a)(2) separately defines "value" for exemption purposes as fair market value as of the date the petition is filed, or the date property becomes property of the estate if that is later.

11 U.S.C. § 527(a)(2)(B) frames the practical duty: all assets and liabilities must be completely and accurately disclosed, and replacement value as defined in section 506 must be stated where requested, after reasonable inquiry to establish that value.

• 11 U.S.C. § 521(a)(1) — the duty to file schedules of assets and liabilities.
• 11 U.S.C. § 506(a)(2) — replacement value, retail-merchant test, no sale-cost deduction.
• 11 U.S.C. § 522(a)(2) — value is measured as of the petition date.

Where do state or local rules change the answer?

The valuation standard itself is federal and does not change from state to state. What changes is what happens to the value once you have written it down, because exemptions decide how much of that value is shielded.

Under 11 U.S.C. § 522(b), an individual debtor may claim either the federal exemptions listed in subsection (d) or, alternatively, the exemptions available under federal law other than subsection (d) and under the state or local law applicable where the debtor has been domiciled for the 730 days before filing. Some states do not authorize the federal list at all. Where domicile has not been in a single state for that whole 730-day period, § 522(b)(3)(A) sends you to an earlier 180-day lookback.

So two people with identical property and identical valuations can get different outcomes in different states. The exemption amounts live on our state pages; the number you write on Schedule A/B does not change because of them.

• The retail-merchant replacement-value test is federal and applies everywhere.
• Which exemption set is available depends on your state and your 730-day domicile history.
• Exemptions are not automatic — property must be listed on Schedule C to be claimed as exempt.

What does this look like in practice?

Work asset by asset rather than trying to price everything at once. Start with Part 1 of Schedule A/B, which covers real estate, then vehicles in Part 2, personal and household items in Part 3, financial assets in Part 4, and business property in Part 5. Each part has its own subtotal, and those subtotals roll up into Official Form 106Sum, the Summary of Your Assets and Liabilities.

For household goods, most people group sensibly — a bedroom set, the contents of a kitchen — rather than pricing every fork. The instruction that matters is to be as complete and accurate as possible and to list each asset only once, in the category where you think it fits best.

Some assets are easy to miss because they do not feel like property: cash in your wallet, security deposits with a landlord or utility, prepaid rent, tax refunds you have not received, insurance surrender values, and claims against someone else even if you have not filed a lawsuit. Schedule A/B asks about all of these by name.

• Cash on hand, checking, savings, and certificates of deposit.
• Security deposits and prepayments — electric, gas, telephone, rental deposit, prepaid rent.
• Retirement and pension accounts, listed separately by type and institution.
• Claims against third parties, whether or not you have sued yet.

What documents and records back up your numbers?

11 U.S.C. § 527(a)(2)(B) requires that replacement value be stated after reasonable inquiry to establish that value. "Reasonable inquiry" is the operative phrase: you are expected to look, and to be able to say how you arrived at a figure.

What that looks like in practice is keeping whatever you relied on. Screenshots of comparable used listings, a dealer valuation printout for a vehicle, a recent tax assessment or appraisal for real estate, account statements dated near the filing date, and a title or registration showing who owns what. If you write $4,000 for a car, the record of how you got to $4,000 is what makes that number defensible.

The schedules are signed under penalty of perjury. Official form guidance warns that knowingly and fraudulently concealing assets, or making a false oath or statement in connection with a bankruptcy case, can result in a fine, imprisonment, or both, and that all information supplied is subject to examination by the Attorney General.

• Comparable used listings for vehicles and larger household items.
• Account statements, deeds, titles, and registrations dated near filing.
• Recent appraisals or tax assessments for real property.
• A short written note for each estimate explaining what you relied on.

What should you ask a lawyer about valuation?

Valuation is where a small judgment call can have a large effect, because the number interacts with exemptions, with what a trustee may pursue, and in Chapter 13 with what a plan has to pay. Those interactions are exactly what a bankruptcy lawyer is for.

Cost is a fair part of that conversation, and the court's own fees are fixed and public. A Chapter 7 case carries a $245 filing fee (28 U.S.C. § 1930(a)(1)(A), (f)(1)), a $78 administrative fee, and a $15 trustee surcharge (Bankruptcy Court Miscellaneous Fee Schedule, Item 9). A Chapter 13 case carries a $235 filing fee (28 U.S.C. § 1930(a)(1)(B)) plus a $78 administrative fee. Attorney fees are separate and vary.

Useful questions to bring: which exemption set applies given where you have lived, whether any asset's value is genuinely contestable, and what happens if a trustee disagrees with a figure you reported in good faith.

• Which exemption set applies to me given my domicile over the last 730 days?
• Is any asset I own likely to be valued differently by a trustee?
• How does the value I report affect a Chapter 13 plan payment?
• What should I do if I discover an asset after filing?

Frequently asked questions

Do I subtract my car loan or mortgage from the value?

No. Schedule A/B instructs you not to deduct secured claims or exemptions from the value you report. The loan balance is reported separately on Schedule D: Creditors Who Have Claims Secured by Property, and any exemption is claimed on Schedule C. Reporting the full value and the debt separately is what allows the equity calculation to be done correctly.

Is replacement value the same as what I paid for the item?

No. Under 11 U.S.C. § 506(a)(2), replacement value for personal, family, or household property is the price a retail merchant would charge for property of that kind, considering its age and condition at the time value is determined. Purchase price is usually much higher, because it does not account for wear or the passage of time. Used furniture and electronics typically value at a small fraction of what they cost new.

What date do I value my property as of?

The filing date. 11 U.S.C. § 506(a)(2) sets replacement value as of the date the petition is filed, and 11 U.S.C. § 522(a)(2) defines value as fair market value as of the petition date, or as of the date property becomes property of the estate if it comes in later. A later sale at a different price does not retroactively change the number you reported.

Do I have to price every single household item?

Official Form 106A/B directs you to separately list and describe items within each category and to be as complete and accurate as possible. In practice, ordinary household goods are commonly grouped into sensible categories rather than itemized individually. Higher-value or distinctive items — jewelry, collectibles, firearms, expensive electronics — generally warrant their own line and their own valuation.

What happens if I get a value wrong?

An honest estimate made after reasonable inquiry is different from a false statement. 11 U.S.C. § 527(a)(2)(B) requires replacement value to be stated after reasonable inquiry, and official form guidance warns that knowingly and fraudulently concealing assets or making a false oath can result in a fine, imprisonment, or both. Schedules can generally be amended; keeping the records behind each estimate is the practical protection.

Do I list property I own jointly with someone else?

Yes. Schedule A/B asks for both the current value of the entire property and the current value of the portion you own, and asks you to identify who has an interest in it. There are checkboxes for Debtor 1 only, Debtor 2 only, both debtors, or at least one debtor and another person, plus a separate box for community property.

Do retirement accounts and deposits count as property to value?

Yes. Part 4 of Schedule A/B covers financial assets, including cash on hand, checking and savings accounts, certificates of deposit, bonds and publicly traded stock, and retirement or pension accounts such as an IRA, 401(k), 403(b), or Keogh. Security deposits with landlords and utilities and prepaid rent are also listed there. Listing an asset is separate from whether it is exempt.

Sources

• 11 U.S.C. § 506 — Determination of secured status · official source
• 11 U.S.C. § 521 — Debtor's duties · official source
• 11 U.S.C. § 522 — Exemptions · official source
• 11 U.S.C. § 527 — Disclosures · official source
• U.S. Bankr. Ct. D. Alaska, The Forms Individuals and Married Couples Need to File Bankruptcy
• Bankr. E.D. La. official guidance — Chapter 7 Form Packet
• Bankr. N.D. Ill. official guidance — Chapter 7 - Additional Documents
• Bankr. M.D. La. filing packet — Ch7_Vol_Petition_ Package-2026.pdf
• Bankruptcy Court Miscellaneous Fee Schedule, Item 8
• Bankruptcy Court Miscellaneous Fee Schedule, Item 9
• 28 U.S.C. § 1930(a)(1)(A), (f)(1)
• 28 U.S.C. § 1930(a)(1)(B)

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