NJ Bankruptcy Attorney Explains What Is Considered An Asset

Blacks Law Dictionary provides the following definition of an asset, “Property of all kinds, real and personal, tangible and intangible, including, inter alia, for certain purposes, patents and causes of action, which belong to any person including a corporation and the estate of a decedent. The entire property of a person, association, corporation, or estate that is applicable or subject to the payment of his or her or its debts.”
An asset is not only something that is presently possessed, both intangible and tangible, but a present right of something of value in the future. The present right to sue someone for money or property is a present asset.
For example, a bankruptcy debtor that is injured in an auto accident, who is entitled to money for his injuries creates a present asset. The asset was created on the date of the accident, not the date that money was received for the loss. Therefore, if such auto accident occurred prior to the bankruptcy filing and prior to receipt of the funds, the right to sue for the money is considered an asset of the bankruptcy estate.
Another example is the right to receive an inheritance. If the bankruptcy debtor is a beneficiary of the estate of someone who died prior to the bankruptcy filing, the right to the money and/or property are assets of the debtor’s bankruptcy estate. It doesn’t matter if the debtor did not yet receive the money or property.
You can contact Robert Manchel at (866) 503-5655 if you have questions about debt and what options you have.