How are replacement values determined?

[inseriousdebt]

I am a little confused on the new law and how assets are determined by replacement values.

Does anyone have any examples or any information on this that they have already gone through in determining this in terms of wedding rings, furniture, clothing, etc....? I would really appreciate it.

[FoolAndHisMoney]

I am a little confused on the new law and how assets are determined by replacement values.

Does anyone have any examples or any information on this that they have already gone through in determining this in terms of wedding rings, furniture, clothing, etc....? I would really appreciate it.

It's the same under new law as it was with old law despite what everyone hears. Just value your assets as if you had to get rid of it all by tomorrow, garage sale prices. Secured property like cars, furniture, etc. is valued at replacement value if it's less then 3 years old, so if you were to redeem under chapter 7 or pay out in a chapter 13 you would pay back the full value. Cramdown has been limited.

[SinkingFast]

If you have something relatively new, purchased recently ......... Value it at what you purchased it for. A TV, for example. Say you bought it within the last 6 months. Value the TV for what you actually paid when you bought it.

Other stuff,......... Use garage sale, yard sale, Goodwill prices. The places where you'd find an 8 year old couch for sale. Use those prices.

Goodwill sells sofas for $50. A complete working computer with monitor will run $50 to $100. Used VCR, $10 to $20. Now if you have something newer, you'll need to use a more realistic replacement value.

You don't have to break out and itemize your kitchen goods. Dishes, pots and pans, and such. Just lump sum that. Same with clothes. Clothes, what I've seen on PACER for folks here,....... $100 to $200 per person.

Jewelry is easy too. Take your goods to a jeweler and ask what they will give you for your pieces. Unless you've got antique pieces or certed stones, the price a jeweler will pay will be scrap prices for the metal and the stones. Which ain't much. While you pay tons for jewelry when you buy new, used pieces go a lot cheaper.

[so-beyond-broke]

I am glad that someone else asked this question

Hi

I am currently reading "The New Bankruptcy - Will it work for you?" by atty Stephen Elias - a NOLO book. This section is quoted from the book:

"Under the new law, you need to compute the property's replacement value: what it would cost to buy that specific property - considering its age and condition -from a retail merchant. If you use the internet, visit ebay to get a fix on the going price for just about anything. Or briefly describe the item in Google or other search engine and see what turns up. As long as your valuations are based on the going retail for the item in question, you should use the lowest value you can find -that means you are more likely to be able to keep the property under your state's exemption laws."

Others here mentioned to only use the price paid for things recently purchased (within 6 months) and only for secured items you'd use replacement value figures. Everything else can be garage sale prices but this book did not clarify the difference.

The IRS has a publication based on valuing donated goods based on the fair market value based on the condition, age, etc. Where I live, there are publications out where people advertise things that they are selling. Basically the stuff is used, so I read the descriptions and select the ones that are similar to my old stuff and I will pick the cheapest price.

Did anyone here actually itemize all of their items on the bk forms with the values. Or did you just list the aggregate amounts of your personal property and just attach a list of those specific items for the trustee just in case?

Thanks,

sbb

[anonymuse]

Hi

I am currently reading "The New Bankruptcy - Will it work for you?" by atty Stephen Elias - a NOLO book. This section is quoted from the book:

"Under the new law, you need to compute the property's replacement value: what it would cost to buy that specific property - considering its age and condition -from a retail merchant. If you use the internet, visit ebay to get a fix on the going price for just about anything. Or briefly describe the item in Google or other search engine and see what turns up. As long as your valuations are based on the going retail for the item in question, you should use the lowest value you can find -that means you are more likely to be able to keep the property under your state's exemption laws."

I was reading the same book and was just ready to post the same question, but found you're unanswered question.

I'm a bit concerned about that since I feel like they are saying that the old laws were "Fair Market Value" and the new ones are "Replacement Value" (based on condition, age, etc.)

eBay seems like a resource and I tried "Its Deductible" part of TurboTax since it's based on eBay to determine the value of donated items.

I'm also want to try the http://www.orionbluebook.com/ but unfortunately it costs to look things up. But it has things under categories such as: audio, camera, car stereo, computer, copier, games, musical instruments, power tools, pro sound, video & TV, vintage guitars & collectibles.

[time4cake]

Replacement value would never work. If you listed your assets at replacement value the court house would turn into a flea market.

Chapter 7 is a liquidation, not an insurance claim.

Before you spend an inordinate amount of time trying to find value ask yourself if you really are concerned about exceeding your exemptions.

[brokemommy]

Wanted to revive this thread, kinda like fishing for info without a pole and see if anyone adds anything new too it. Anyone seen some other good posts to read about value of assets.

[anonymuse]

Unfortunately, eBay only gives 2 weeks history now--you have to pay to look back further (30, 60, or 90 days.)

You've got pawn shop, thrift store, goodwill prices.

[brokemommy]

If you have something relatively new, purchased recently ......... Value it at what you purchased it for. A TV, for example. Say you bought it within the last 6 months. Value the TV for what you actually paid when you bought it.

Other stuff,......... Use garage sale, yard sale, Goodwill prices. The places where you'd find an 8 year old couch for sale. Use those prices.

Goodwill sells sofas for $50. A complete working computer with monitor will run $50 to $100. Used VCR, $10 to $20. Now if you have something newer, you'll need to use a more realistic replacement value.

You don't have to break out and itemize your kitchen goods. Dishes, pots and pans, and such. Just lump sum that. Same with clothes. Clothes, what I've seen on PACER for folks here,....... $100 to $200 per person.

Jewelry is easy too. Take your goods to a jeweler and ask what they will give you for your pieces. Unless you've got antique pieces or certed stones, the price a jeweler will pay will be scrap prices for the metal and the stones. Which ain't much. While you pay tons for jewelry when you buy new, used pieces go a lot cheaper.

okay, I thought there was some tougher way they were going to evaluate what something was worth. I thought I had read something like if it was a high dollar purchase like a tv you needed to put down what you paid for it.

[brokemommy]

Unfortunately, eBay only gives 2 weeks history now--you have to pay to look back further (30, 60, or 90 days.)

You've got pawn shop, thrift store, goodwill prices.

I found the exact same thing with ebay, hence why I dug this post up. How do I pay for further look back? never heard of that thx.

Pawn shops thrift stores way to much work.

[anonymuse]

I found the exact same thing with ebay, hence why I dug this post up. How do I pay for further look back? never heard of that thx.

The feature is called "Marketplace Research".

http://pages.ebay.com/marketplace_research/

$2.99 - 2 day pass
$9.99 - monthly

[brokemommy]

The feature is called "Marketplace Research".

http://pages.ebay.com/marketplace_research/

$2.99 - 2 day pass
$9.99 - monthly

Oh my gosh!!! $10 a month, I never seen this before, Jeepmom teaches me about pictures, now you explain this!!! Us communicating is so informative.
I can't believe the $10 on ebay, thats insane!!! I am spending plenty of money with them using there services, now I have to pay for features. That is terrible.

[anonymuse]

It's more than just providing the listing of the completed items. It gives you average starting price, ending price, % won, # bids, etc.... To get that stuff, you used to have a subscription at something like Andale. Now Andale charges about $8 a month, but only has 30 days of info now that eBay has the 30-60-90 day options.