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Non-liquid assets like property can be legally seized when compensation is required (e.g. by a creditor or the IRS). But there are many other non-liquid assets one can have. A video game account (like in World of Warcraft) can be worth thousands of dollars. Some CS:GO weapon skins (an asset in a digital video game) can be worth thousands of dollars (up to a million dollars). Ones social media account can be worth thousands of dollars. Even more extreme, hair can be sold for around $500, and a woman's eggs can be sold for thousands. Kidneys can be sold for tens of thousands. More recently: rights to clone one's image/likeness/voice using AI can probably be sold for a lot in some cases.

How far does the legal system go in what non-liquid "assets" are allowed to be seized? And is one required to declare these as "assets" to the court? E.g. does one have to tell the court they have World of Warcraft account that can be sold for thousands?

chausies
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1 Answers1

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Generally body parts that haven't already been severed from your body can't be seized for payment of debts by creditors. Likewise, the benefit someone receives from having received a higher educational degree isn't transferable and can't be seized by creditors (the fact that it can't be seized is one the the legal theory reasons that student loan debts can't be discharged in bankruptcy).

Typically, statutes will also specify certain kinds of tangible property (real and personal) that can't be seized by creditors such as cemetery plots that have been used, medical devices needed to keep a judgment debtor alive, and certain household goods.

Intangible assets, like a World of Warcraft account, or a social media account, or a trademark, in contrast, can be seized by creditors, although the mechanism for doing so in court can be somewhat fraught, because the rules weren't designed with those kinds of assets in mind. In the case of a WoW account, part of the issue would be the restrictions that the firm that owns the WoW game places on such transfers.

For example, the Proud Boys trademark in their name was recently seized by a tort creditor in connection with the destruction of a sign in front of a church.

Another somewhat novel intangible assets that comes up with some frequency is airline miles in frequent flyer programs.

Another tricky asset that comes up sometimes is a membership in a country club, which is assignable and has significant monetary value, but only with the permission of the country club. An ownership interest is a residential real estate co-op (common in some major East Coast cities and only transferrable with permission of the co-op board to a sufficiently desirable and creditworthy transferee) presents similar issues.

Also, a court may order debtor who has the right to transfer property to do so, and to turn over the proceeds to the judgment creditor, rather than just issuing a court order directing that the asset be transferred. Alternately, the court might place the asset in a receivership to be transferred by the receiver where the transfer process is more complicated than a simple sheriff's sale of the asset can effect.

is one required to declare these as "assets" to the court? E.g. does one have to tell the court they have World of Warcraft account that can be sold for thousands?

Judgment debtors can be compelled by law to disclose their assets to judgment creditors.

Generally, a judgment debtor will not be penalized for not thinking out of the box to consider a non-traditional possible asset in response to a general written interrogatory.

But judgment creditors can also take the deposition of a judgment debtor (i.e. live testimony under oath recorded by a court reporter in response to questions from the judgment creditor's attorney). And, if asked a question clearly enough about an unconventional kind of asset, the judgment debt is legally required to give a truthful answer.

mjmouse
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ohwilleke
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