Often people are confused about what an asset is for purposes of bankruptcy. In initial consultations, potential clients often tell me that they have no assets. However, they are either mistaken or do not understand the concept. An asset is anything you own, or that you have a right to. Your bankruptcy schedules must reflect all of your assets. So, whether it is your home, a timeshare, a bank account, or the clothes on your back, its an asset. Depending on which type of bankruptcy you file, and what assets you own, you might be able to file bankruptcy and keep all of your assets.
Something is an asset whether you owe money on it or not. If you might possibly lose
an asset in your bankruptcy, you could lose it to a secured creditor, or you could lose it to the bankruptcy trustee who will sell it and give some money to your creditors.
Be sure to disclose all of your assets to your attorney before you file your case, so you can
be well informed on how your assets are to be treated.