unsecured snowmobiles

[jmstay]

I have 2 snowmobiles valued at 7k. I owe 13k on a revolving credit card account (HSC) which was used to purchase them. Must I serrender these in a ch13 or can I keep them and pay the creditor as I am the remainder of the unsecured debt through a payment plan based on my availible income? Reaffirming this debt is teh only option that my lawyer says I have. This is not an option as I am afraid that by requesting this the court will object and take the little left over money that we have and are willing to spend to keep the mobiles to apply to our general debt payment.

So, do I need to worry about Best Buy coming to get my 4k TV as well?

My lawyer is advising the snowmobiels must go...any onther insight?

[Minnymouth]

Since snowmobiles are considered "luxury items", more than likely they will be surrendered...... unless you have someplace that you can keep them exempt (I doubt).....

Do you live in area where snowmobiles are used most of the winter time for transportation to work, etc?????

Snowmobiles, motorcycles, campers, boats are considered luxury items..... and often you are forced to sell or surrender them.....

[HeatherB]

I would think they'd want the snowmobiles. The TV, well, not sure. When did you purchase it??

I've heard people say that they have been called and told they had to return best buy products (large items that were purchased in last year) but I've also heard that they usually don't come to pick them up. It's harder to enter a person's home to repo something than to tow off a car on the street. They can't just break into your house and take it - they have to get the police involved and such. OTOH, since the purchase was for a TV, it may be considered a "secured" debt. I'm really not sure on that, though.

[Dirk Squarejaw]

I saw this thread and it made me curious. I'm in Indiana and have an older motorcycle that is paid off and worth about $3500. Can part of my $8k wildcard be used to protect it?

[Minnymouth]

Yes, I'm thinking you can use your wild card on the cycle.....

Somebody else might want to pitch in here that is more knowledge about the wild card than I am.....

[CindyLou]

At this point the credit card account and the snowmobiles really don't have anything do with each other if they are not secured. So reaffirming the debt really would have no bearing on whether you could keep the property. I am not sure where your attorney was coming from with that idea....I would ask again about that and get some clarification. Basically the snowmobiles are free and clear assetts and the credit cards are just like any other unsecured debt. Unless you have an exemption that will cover the snowmobiles then you will likely loose them.

[lrprn]

Whether you can keep the snowmobiles depends on two things:

1. Can you protect both using your state exemptions (or if your state allows it, the federal exemptions)? If you can, then you can keep them.

2. If you can't protect them with your exemptions, how much are they really worth and how easy are they for a trustee to sell? The trustee wants easy cash, not two snowmobiles. Has to be worth his/her time and cost to put them up for auction.

More likely scenario than auction though....your trustee may present you with an offer - pay him/her what they are worth to keep them.

Frankly a lot is going to depend on the snowmobiles' value and how much your trustee thinks he/she can make off them. Ask your lawyer how your trustee operates when there are sellable, unprotected assets involved in Ch 13.

We have a rowboat with small engine and a pop-up camper that are listed as unprotected assets on our plan. Total value of both when we filed was about $5K. Our trustee has shown no interest in them whatsoever. If he tried to make us pay to keep them, we would politely decline. But if he lets us keep them after discharge....well, that's fine too