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What if you are sued and the only asset you have is your house and its value is much greater than the claim?
Wiki User
∙ 18y ago
You need to find out how much of the home can be protected by the laws of your state. If the owner has more equity in the house that is covered by the exemption law, the creditor who gets a judgment can ask the court to sell the home. For example if the house is worth $150,000, and the owner has $30,000 equity and the state exemption is $15,000 then the debtor gets the $15,000 and the house is sold, the lender is paid and the creditor gets what is left. Judges don't usually allow a person's home to be sold though, especially if it is jointly owned and some states do not allow it by law. Usually a lien is placed against the property and continues to add on interest until it is paid, a $1500 lien can end up being $10,000 + in some cases.
Wiki User
∙ 18y ago
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Difference between book value and fair value in accounting?
Book value of asset is the value of asset shown in books of accounts while fair value of asset is the current price at which that product is selling or sellable in market.
What the mean of impairment of the assetsplease example?
impairment loss f an asset is the reduction in the income generating ability of that asset. it is calculated as: carrying value less recoverable amount. -carryibg value is the cost less accumulated depreciation -recoverable amount is the higher amount between the net selling price of an asset and its value in use.
What does net value mean?
it means how much the current asset is worth in the market
Which one is greater 8.090 or 8.909?
8.909 is the greater value.
Formula for calculating straight line depreciation?
Formula for straight line depreciation is as follows: Depreciation = (Cost of asset - salvage value) / useful life of asset
When is a gain on disposal of an asset recorded?
A gain is recorded when the asset is sold for a price greater than the assets book value.
Would a mutual fund be an example of a real asset?
Yes mutual funds are examples of real assets but the value of the asset is not fixed. The value changes with the changes to the stock market and the performance of the fund house.
The book value of an asset is the same as market value of the asset?
Book value of an asset is the value which is shown in books of accounts while market value of asset is the value which is currently same asset is selling in market so both of these values are not same but it can be same but normally they are not same.
When an asset is sold a gain occurs when the?
Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
Is unexpired insurance an asset?
Yes. Unexpired insurance, or prepaid insurance, represents value to the business since it has utility and is owned by the business (the company has claim to the policy). Therefore by definition, unexpired insurance is an asset.
Is it unlawful to sell a house greater than it true value?
No.
What is the estimated salvage value of a fixed asset?
The estimated salvage value of a fixed asset refers to the expected residual value of the asset at the end of its useful life. It is an estimate of how much the asset could be sold for or its scrap value. This value is important for calculating depreciation expenses and determining the asset's net book value. The specific salvage value can vary depending on factors such as market conditions, technological advancements, and the condition of the asset.
Is there any difference between absolete asset and assets at written down value?
Obsolete asset is that asset which suddenly becomes obsolete due to any technological change or any reason and has no value while written down asset is asset which is usable asset with written down value
Difference between book value and fair value in accounting?
Book value of asset is the value of asset shown in books of accounts while fair value of asset is the current price at which that product is selling or sellable in market.
The present value of the expected future cash flows of an asset represents the asset's?
intrinsic value
What is Book value vs fair value?
Book value is the value of asset shown in financial statements while fair value is the value at which asset can be sold in market
Is the fair value of an asset retirement obligation recorded as an increase to the related asset and as a liability?
Is it true the fair value of an asset retirement obligation recorded as an increase to the related asset and as a liability?
