In most cases items bought with credit cards will be unsecured and will not be included in establishing your equity in hard assets. Major purchases on Sears cards can be an exception to this rule. See Secured vs. Unsecured Creditors for more information. Q. I now know the value of my assets and their corresponding secured debt. A. Establish in which items you have equity.
Equity exists when the value of the asset exeeds it's secured debt.
Q. I have some of each. A. One of the main reasons for going through a workout or bankruptcy will be obtaining a fresh start. Let's imagine that you bought a condominium as an investment. You thought that the rental would pay for the mortgage, condo expenses, repairs, leave you extra cash and build equity for retirement. For five years thats just what it did.