Would a bankruptcy trustee take your Beanie Babies?

beanie babiesWould a trustee be interested in seizing your Beanie Baby collection if you went ahead and filed a bankruptcy case?

While the answer is almost certainly “no,” one of the Massachusetts trustees asks every debtor who comes before him if they own Beanie Babies or similar collectibles.

The point is not that there is a great danger of the furry friends whose popularity peaked several years ago being hauled off to a bankruptcy auction, but that debtors considering bankruptcy need to be aware of many types of “property” that are easy to forget.

Like the right to sue someone.

Or Paypal accounts. Or gift cards.

Another trustee usually asks about uncashed lottery tickets. I’ve never met a bankrupt debtor who would want to hoard uncashed lottery winnings, but hey, ya never know.

More phantom property? — security deposits, store credits, literary or musical compositions, internet domain names, class action lawsuits.

On and on it goes — and since “property of the estate” that is not properly listed can sometimes be forfeited to the trustee, where it could have been protected otherwise, it makes sense to hook up with a good bankruptcy advisor early-on if your thinking of filing a case.

I’ll guarantee you’ll sleep better if you do. And your Beanie Babies will be right there with you.

 

By Doug Beaton

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