- The debtor's interest is significant during bankruptcy proceedings and is used to determine the value of any remaining claim a debtor may have to assets contained within the bankruptcy estate. It particularly concerns those assets which may be exempt from a bankruptcy ruling.
- The market value reflects the fair market value of the property on the day the bankruptcy petition filed. Property exempt from bankruptcy proceedings is determined by federal or state statutes, with some states adhering only to state laws and others, to state and federal laws.
- The correct bankruptcy property schedule form should be obtained, either Schedule A for real estate or Schedule B for personal property, to value the assets of the bankruptcy estate. The court permits the debtor to determine market value of the assets, deeming those values correct, unless the trustee for the creditors objects.