Do you have to sell your cat during bankruptcy?

There should be more to life than constantly struggling to pay monthly bills or worrying about your financial future. Still, if you are like the average American who is more than $90,000 in the red, your outstanding debt may be ruining your life. Your cat always seems to make everything feel a little better.

When you file for Chapter 7 bankruptcy protection, you must disclose all your assets. The bankruptcy trustee then may sell some of your assets to pay your creditors, while the bankruptcy court discharges many other debts.

Your cat is an asset

Even though your feline feels more like a living and breathing member of your family, the animal is an asset that requires disclosure. Therefore, when listing your assets, you likely must inform the bankruptcy trustee about your cat.

Your cat probably has little value

For the bankruptcy trustee, the cost to secure, feed and care for a living animal is significant. Unless your animal is particularly valuable on the open market, there is a good chance the bankruptcy trustee will decide the cost of selling your cat far outweighs any benefit to the bankruptcy process.

You have a failsafe

If you still worry you may lose your furry friend during bankruptcy, there is a failsafe. That is, you may be able to use a bankruptcy exemption to protect your cat from the bankruptcy trustee.

You probably do not have to worry about parting with your cat when you file for Chapter 7 bankruptcy protection. Therefore, you should not let an irrational fear of losing your feline dissuade you from making the right choices for your financial future.