Personal assets and their value

Posted by admin on January 15, 2009

Personal assets include checking and savings accounts, investments, personal property, real estate, collectibles, and the value of life insurance policies. In order to place a value on personal assets, you rely on either market value of appraisal value.[1]

Valuables such as a car, house, computers and jewelry are usually noted, but there are many other personal assets that you may forget that you should consider in your list. Read on to learn how to make a list of personal assets.[2]

Values of automobiles and other vehicles can be found online by referencing one or several of the resource sites available. Significant differences in vehicle values or custom vehicles can require the participation of an appraiser.[3]

Business owners are often turned down for personal credit because they appear to be overextended with business expenses. They don’t realize that by mixing their personal funds and personal credit history with their business, they create a situation that prevents them from obtaining both personal and business credit .[4]

Businesses advertising voluntary debt reorganization plans may not explain that the plan is a bankruptcy filing, tell you everything that’s involved, or help you through what can be a long and complex process. [5]

Income before taxes in fiscal 2006 was $328,495, which represented a year-to-year decrease of $446,374, or 57.6%, as compared to income before taxes of $774,869 in fiscal 2005. The principal reason for the decline was the payment of stock-based compensation in fiscal 2006 in the amount of $452,360, which accounted for more than the total dollar decrease.[6]

Income tax withholdings plunged 6% year-over-year in the past 24 business days, well below the three-month average of -3.1% year-over-year. Such a decline is consistent with job losses of 500,000-plus per month.[7]

Creditors of a corporation cannot recover from the personal assets of individual shareholders to settle corporate debts. Limited liability is the most advantageous feature of incorporating your business.[8]

Creditors can also petition for a business to declare bankruptcy. [9]

Debt financing can be either short-term (full repayment due in less than one year) or long-term (repayment due over more than one year). The lender does not gain an ownership interest in your business and your obligations are limited to repaying the loan.[10]

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