If you’re struggling with debt and are worried about how filing for bankruptcy might affect your furry friends, the good news is that bankruptcy can actually provide protection for almost all animals in North Carolina. As a certified specialist in consumer bankruptcy with lots of experience, I can assure you that filing for bankruptcy is a responsible way to manage your debt and take care of your pets at the same time.

One of the questions we ask in our bankruptcy paperwork is the value of your pet. We do that because we are required to do so. Answers to that question usually fall within one end of the spectrum or the other. Some folks say they would happily give away their pets (jokingly), while most tell us that their pets are priceless. In bankruptcy, you have to put some value on your pets. Typically, you would value the pet as if someone were buying it from a random shelter. You put a value on your pet so we can use the bankruptcy laws’ power to exempt or protect your pet.

In North Carolina, you can use exemptions to protect most, if not all, of your property from liquidation in a Chapter 7 or Chapter 13 bankruptcy case. These exemptions can be used to protect assets like your home, your car, and your personal property, including your pets. If you have an exemption available that can be used to protect personal property, you may be able to use it to fully protect your pet from liquidation. Even if the bankruptcy exemption is not enough to fully cover the value of your pet, most trustees understand that pets are important members of the family and will work with you to find a solution that allows you to keep your pet while still fulfilling your obligations under the bankruptcy process.

We have done this a long time and in all of the years we have done this we have never had someone lose their pet in a bankruptcy.

In most consumer bankruptcy cases, the court will not require you to sell your pet to pay your creditors. Courts generally understand people’s emotional attachment to their pets and recognize that pets are not merely property but rather living beings that require care and attention.

However, if your pet is a thoroughbred horse that recently won the Kentucky Derby and is worth lots of money, the Trustee may look to try to sell the horse. However, it’s unlikely that is your situation.

Additionally, the court may question whether you have the financial means to care for a pet properly. Still, as long as you can show that you plan to provide for your pet’s needs, the court will likely let you keep them.

Again, the likelihood of you losing a pet while filing a bankruptcy is extraordinarily small. If you have real concerns about protecting your pet you should call an experienced bankruptcy attorney and spend a few minutes speaking with them.

However, if you’re still concerned about how filing for bankruptcy might affect your pet, there are several alternatives you can consider. For example, you may be able to negotiate with your creditors to reduce your debts or create a payment plan that is more manageable for you. Additionally, many organizations and resources are available to help pet owners who are struggling financially, such as low-cost vet clinics or assistance with pet food and supplies. Finally, if you know you won’t be able to care for your pet properly after filing for bankruptcy, you may want to consider finding a new home for them with a trusted friend or family member.

Filing for bankruptcy is a responsible way to manage your debt and protect your pets at the same time. With exemptions available to protect your pets, a court that is understanding of the bond between pets and their owners, and several alternatives available to help pet owners, there is no reason to worry about how bankruptcy will affect your furry friends. However, as always, it’s essential to consult with a qualified bankruptcy attorney to discuss your specific situation and determine the best path forward.