Q: Would an unfinished software app need to be disclosed in a Chapter 7 Bankruptcy?

A: The tradeoff in bankruptcy is full disclosure in return for a discharge of debts. The debtor benefits from full disclosure, and avoids the possibility of a denial or revocation of discharge. All the schedules and statements in bankruptcy are signed by the debtor under penalty of perjury. If a debtor lists a property interest, the property is deemed to be abandoned and returns to the debtor upon case closure. The bankruptcy schedules require that the debtor disclose intellectual property and general intangibles. Intellectual property is property created by one's intellect or creativity, whether a copyright or patent has been issued. General intangibles are property interests without a physical existence. Intellectual works in progress often have only nominal value, because they require significant additional service that is unique to the creator. There is often not much fair-market value for an idea alone.

A: Yes. It would.

A: You should absolutely disclose any existing code, development work, or partially completed software applications as potential assets in your bankruptcy filing. While abstract ideas and future plans may not need to be listed, once you've begun actual development or created tangible work product, this represents something of potential value that the bankruptcy trustee needs to evaluate.

The key distinction here is between purely theoretical concepts versus actual work-in-progress that could potentially be sold or have monetary worth. Since you've already started development, this likely crosses the threshold into being a disclosable asset, even if it's incomplete. Failing to disclose assets can create serious legal issues down the road.

Consider having another conversation with your bankruptcy attorney to specifically discuss the current state of development and get clear guidance on disclosure requirements. Be completely upfront about how much work has been done so far. You want to ensure full compliance and transparency in your bankruptcy filing to avoid any potential complications or accusations of attempting to hide assets.