Motorcycle considered luxury item?

[adam1028]

Sorry to be full of questions. filed chapter 13 in May 2016, let dismiss per lawyer to re-file this month so my debts could be discharged. Question is I have 1 car and a motorcycle. Had both in last filing plan confirmed no problems. This time the lawyer said they will probably consider the motorcycle a luxury item and make me give it back, not let it be in the plan.

He said didn't matter last time since the unsecured debts could not be discharged, but since they will be this time they will deny putting the mc in the plan and request the unsecured debts be paid. MY daughter co-signed for it so I was looking at protecting her as will.

[lolly78]

I'm sure it would be considered a luxury item, but I'm no expert. My husband had two bikes when we filed. Only one was in our possession though. It was put through as an unsecured debt, and they came and repossessed the bike (for some strange reason my husband let them in the garage). I don't think anyone ever inquired about the other bike though. They are being paid through our plan, and the person (close family member) who my husband sold it to never fully paid us for it, and I later found out that the family member sold it even though he never had title to the bike, heck we didn't even have the title to the bike.

[justbroke]

Sorry to be full of questions. filed chapter 13 in May 2016, let dismiss per lawyer to re-file this month so my debts could be discharged. Question is I have 1 car and a motorcycle. Had both in last filing plan confirmed no problems. This time the lawyer said they will probably consider the motorcycle a luxury item and make me give it back, not let it be in the plan.

Ask as many as you need to ask; we are a bankruptcy resource without all the bad information.

If you are filing alone in a Chapter 13, then either the car or the motorcycle is "not necessary for the reorganization of the debtor" to use similar words from the bankruptcy court. That doesn't meant that you can't keep it. It means that you will need to provide at least as much as the value of that item (motorcycle) over the course of the Chapter 13 to the unsecure3d creditors.

Remember... a Chapter 13 allows you to keep any property that you can AFFORD.

He said didn't matter last time since the unsecured debts could not be discharged, but since they will be this time they will deny putting the mc in the plan and request the unsecured debts be paid. MY daughter co-signed for it so I was looking at protecting her as will.

Your daughter will only be protected by the co-debtor stay (11 USC 1301 if I'm remembering correctly) if you are dealing with the entire value of the motorcycle in the plan. I don't know why your attorney says that you can't keep the motorcycle... unless the problem is that you just can't AFFORD the motorcycle.

As your attorney about the "Chapter 7 liquidation test" and how this affects your ability to keep the motorcycle.

[adam1028]

I am filing jointly with my wife who is not on the motorcycle or car loan. My wife does not have a DL if that matters. There is zero left over to pay for unsecured creditors once the lawyer did the means test. Showns I have just enought to pat the secured creditors car and motorcycle his fee and the trustees portion. I am paying the entire amount owed on the car and the motorcycle.

[justbroke]

How old is the car and/or motorcycle? By old, I mean when did you buy each of them AND did you ever refinance them. If they are more than 2.5 years old (910 days) or you refinanced either of them, you should be able to do a cram down. If they are quite "new" (less then 910 days and never refinanced) then ignore everything I wrote.

[adam1028]

How old is the car and/or motorcycle? By old, I mean when did you buy each of them AND did you ever refinance them. If they are more than 2.5 years old (910 days) or you refinanced either of them you should be able to do a cram down. If they are quite "new" (less then 910 days and never refinanced) then ignore everything I wrote.

Bought motorcycle June 2014 and car February 2016 so no cram down for me

[wobbly]

I had 1988 BMW and a 2009 Ninja. I owned the car and had about 3K loan on the bike. I tried to include the bike in the 13. They made me surrender the bike a month after the 341 meeting. My argument that I had an older car and needed the bike as a necessity, didn't matter. I just wheelied it a lot to get it out of my system for a few weeks before they took it. Paid off the loan completely and I did not get anything back. I could have sold it for more than was owed. Good Luck!

[adam1028]

Guess I better wait before I invest in a new battery and see what happens