What is Considered A Liquid Asset?

[SaraAndLuis 0]

What is considered a liquid asset for the 1-134 Affidavit of Support. I am currently a student and my parents might fill out the form for my fiance but we are unsure whether their salaries alone (which I did read in one forum) would be enough and what is sufficient evidence. Also, would a car or a 401 K be considered a liquid asset?

[sachinky 465]

Liquid asset is anything that can be converted quickly in cash without loss in value or hardship to the sponsor. Basically, anything that's 'as good as cash.'

Eg: gold.

No, ONE car cannot be counted as an asset on the I864.

I'm not sure about the 401k -- someone more knowledgeable will be able to help you out there.

[corazónENparaguay 46]

Monies that can be converted to cash in a short period of time (say less than 3 weeks), so yes, your 401K should apply. I don't believe a car is a liquid asset because it is not money.

[Amyyduck 20]

Though I can't say this for certain, I'd be inclined to think that a 401K wouldn't be considered a liquid asset simply because there's so many restrictions and penalties imposed on cashing in on them prematurely. True liquidity comes from being able to convert your asset into cash in a marginally short period of time (say, a couple of weeks?) without losing too much of its value. Savings accounts, stocks, short term bonds etc would be considered liquid. I'd say 401K's CDs and other long term investments probably wouldn't. But... I'm no expert.

Like the person before me stated: hopefully someone else with better knowledge will come along and be able to definitively answer your question! In the meantime, good luck!

[Joan >3 Bob 20]

LIQUID ASSET= A TALL GLASS FILLED WITH CROWN ROYALE AND COKE AND ICE WITH A SPLASH OF LIME JUICE!!!

[JimVaPhuong 4,863]

Look at the forms and instructions. The term "liquid assets" is not used anywhere, on either the I-134 or the I-864. The I-134 contains separate lines for specific types of assets to be entered. The I-864 has fewer specific entry lines, but line 26.c is provided for listing of a broad range of assets, and the instructions define what can be declared as an asset.

The I-134 has lines for cash in savings, personal property, stocks and bonds, life insurance with a cash-out value, and real estate. Presumably, the personal property line could be used for most any qualifying asset.

The I-864 has three lines. One for cash in savings and checking accounts, one for real estate, and one for everything else.

The consulate has discretion with an I-134, so they can choose whether or not to accept something as a qualifying asset. If they apply the I-864 rules (which many seem to do) then the asset must be something which can be converted to cash within 12 months without undue hardship or financial loss. That is a much looser definition than the traditional definition of a "liquid asset", which is cash or it's equivalent. Probably a better way to describe an asset that fits the I-864 rules is a "liquidatable asset".

[pushbrk 12,882]

Look at the forms and instructions. The term "liquid assets" is not used anywhere, on either the I-134 or the I-864. The I-134 contains separate lines for specific types of assets to be entered. The I-864 has fewer specific entry lines, but line 26.c is provided for listing of a broad range of assets, and the instructions define what can be declared as an asset.

The I-134 has lines for cash in savings, personal property, stocks and bonds, life insurance with a cash-out value, and real estate. Presumably, the personal property line could be used for most any qualifying asset.

The I-864 has three lines. One for cash in savings and checking accounts, one for real estate, and one for everything else.

The consulate has discretion with an I-134, so they can choose whether or not to accept something as a qualifying asset. If they apply the I-864 rules (which many seem to do) then the asset must be something which can be converted to cash within 12 months without undue hardship or financial loss. That is a much looser definition than the traditional definition of a "liquid asset", which is cash or it's equivalent. Probably a better way to describe an asset that fits the I-864 rules is a "liquidatable asset".

The I-864 instructions do speak of which assets can be used but the I-134 does not. Nevertheless, Consular officers will use the I-864 definition to evaluate assets listed on I-134 forms. The I-864 says...

Only assets that can be converted into cash within one yearand without considerable hardship or financial loss to theowner may be included. The owner of the asset must includea description of the asset, proof of ownership, and the basisfor the owner's claim of its net cash value.

The 401k can certainly be listed but would not be considered at full value due to the taxes and penalties involved in early conversion to cash.

Also of significance is that for a fiancee one parent, not both, may act as a sponsor. There is no combining of incomes. Pick the parent with the qualifying income of neither qualifies, find somebody else. A married person's 401k would likely be considered first in half and then about in half again (so 25%) because in many cases a spouse is entitled to half the 401k and MUST approve any liquidation or loans.

[garmar 0]

Look at the forms and instructions. The term "liquid assets" is not used anywhere, on either the I-134 or the I-864. The I-134 contains separate lines for specific types of assets to be entered. The I-864 has fewer specific entry lines, but line 26.c is provided for listing of a broad range of assets, and the instructions define what can be declared as an asset.

The I-134 has lines for cash in savings, personal property, stocks and bonds, life insurance with a cash-out value, and real estate. Presumably, the personal property line could be used for most any qualifying asset.

The I-864 has three lines. One for cash in savings and checking accounts, one for real estate, and one for everything else.

The consulate has discretion with an I-134, so they can choose whether or not to accept something as a qualifying asset. If they apply the I-864 rules (which many seem to do) then the asset must be something which can be converted to cash within 12 months without undue hardship or financial loss. That is a much looser definition than the traditional definition of a "liquid asset", which is cash or it's equivalent. Probably a better way to describe an asset that fits the I-864 rules is a "liquidatable asset".

[garmar 0]

Hello Jim,

Too many opinions floating around about some things I need answers too. I thought you might help. For the I-134 package I need to know if they are using line 22 total income or are they going by line 37 Adjusted Gross Income? Adjusted gross income is after self employment tax in my case.

I may need to show assets because I find that my 2010 Adjusted Gross income is $50 lower than the 125% of 2011 poverty guidelines. I could cover this with $150 cash however since I am so close to the border line I would like to show my car (worth $20K) as an asset. I am about to buy a second car for $2500 so will my first car be considered an asset I can use for this purpose? Some say yes and others say a car is not an asset they will consider.

I could also take out a loan on my $20k car but they when they inquire as to where the recent large deposit came from and it is a loan well that is a problem. Which brings to mind liabilities in general. Do they inquire as to what debt I carry. Do they look at credit reports or ask for credit card balances?

I realize a lot of this is subject to the whims of the interviewer. In other cases there are definitive answers. Just would appreciate your knowledge here and/or your opinion.

[dave2u 0]

i am worried about this also. using my assetes i am retired disabled with my SSD now that is not enough but i do own 3 houses in the state of florida i was told that i can only use the house that i live in by someone and that house has to be 125% pf poverty level and i believe it would then have to be worth 100,000 us dollar and that is no problem as it is valued at 235,000-250,00 my other 2 houses are combines worth is around 300,00us my SSD is 850.00 and i do own 6 cars and have a very intense gold collection and i do show i have at least over 10,000us dollars in checking i am wondering if i would have any problems because i do not do taxes because i do not work and i buy these houses as the value has been almost double in the past 3 years and will sell at the top of market im just wondering if they can say no to my assets