If you need a fresh financial start but have pets, you may be wondering what will happen to them upon declaring bankruptcy. After all, while they may be part of the family, the court doesn't necessarily see them as such. Although every petitioner's situation is different, the following generalities usually apply to pets when discharging debt. 

If You File Chapter 7

The court considers pets personal property, which technically makes them an asset. In most cases, though, they’re exempt from the liquidation that occurs during Chapter 7 proceedings. Because typical household pets are not valuable, the trustee will have no reason to sell them. 

If you happen to be a breeder or invested in a racehorse, however, the situation is different. When an animal contributes to your stream of income or is inherently valuable, you may have to negotiate with the trustee to keep it. You might be able to “buy” it or pursue Chapter 13 instead. 

If You File Chapter 13

Because pets come with ongoing expenses, they're also somewhat of a liability in the eyes of the law. This is especially true when it comes to Chapter 13 bankruptcy. Since petitioners who file Chapter 13 must pay back their creditors, pet expenses could play a role in the proceedings. As long as you don't spend an exorbitant amount of money on your furry friends every month, the trustee should not challenge the expenses. If you spend more than the average household, though, you may need to prove the added expense is warranted using animal welfare or companion laws. 

If you’re considering bankruptcy but want to learn more about the consequences of discharging debt before actually filing, contact Zellar & Zellar, Attorneys at Law. With offices in Columbus, Lancaster, Newark, and Zanesville, this law firm has been counseling individuals, families, and businesses throughout Ohio since 1965. To learn more about their bankruptcy services, visit their website, or call (614) 257-1643 to request a consultation. 

This article is intended to provide general information and should not be construed as legal advice or in creating an attorney-client relationship.