owning a motorcylce outright

[shelly66]

What if you did not list a motorcycle that you own outright , how will the trustee know? Our papers were given to the lawyer but we will not file till 7/15. I still don't know what to do about the motorcycle that was given to my son but is in my husbands name. We just don't want him to lose it. If there are 3 drivers in the house can there be 3 vehicles. The two others are financed no equity.I am not trying to be dishonest , just don't know what to do.

[justbroke]

What if you did not list a motorcycle that you own outright , how will the trustee know?

Do not play with the Trustee.

Now that I said that... let me repeat it... do not play games with the Trustee.

They can do an asset search just like anyone else. If that vehicle is registered, then they will find it. Best case is that they just ask for a dismissal for bad faith. Worst case, is that they file a bankruptcy fraud charge. (Seriously, probably only a fraudulent conveyance if you transfer it, but fraud if you tried to constructively hide it.)

Our papers were given to the lawyer but we will not file till 7/15. I still don't know what to do about the motorcycle that was given to my son but is in my husbands name. We just don't want him to lose it. If there are 3 drivers in the house can there be 3 vehicles. The two others are financed no equity.I am not trying to be dishonest , just don't know what to do.

In a Chapter 13, you are probably not going to get 3 vehicles as the code only allows 2. HOWEVER, if you're in a 100% plan, the Trustee won't care. So, if you're in a 100% plan, the motorcycle means nothing as you can keep all assets (property) in a Chapter 13, so long as you're paying 100% to the unsecured creditors or at least as much as they would get in a Chapter 7 liquidation. (Fancy-speak for... if you sold everything you got that was not exempt, how much money would there be to pay the unsecured creditors.)

Oh, did I mention... don't play games with the Trustee? I know you want to be honest, so you must list it.

[shelly66]

i will email our lawyer, I don't think we will be 100% not sure yet.

[justbroke]

i will email our lawyer, I don't think we will be 100% not sure yet.

This motorcycle thing is tough in Florida. Seems some Trustees (southern district and middle district especially?) think they are luxury items.

Your real problem is how much it's worth and that you own it outright I don't recall your case specifics, but you're married filing together, right? Are you exempting a home?

If your are not exempting a homestead (meaning you don't have a homestead at all), you have like $10K in joint "wildcard" exemptions, plus $2K in joint motor vehicle exemptions.

That may be enough to cover it.

(BTW, you probably want to take your "town/city" name off your profile. It's okay to have your State, but your town/city may be too descriptive.)

[HHM]

What if you did not list a motorcycle that you own outright , how will the trustee know? Our papers were given to the lawyer but we will not file till 7/15. I still don't know what to do about the motorcycle that was given to my son but is in my husbands name. We just don't want him to lose it. If there are 3 drivers in the house can there be 3 vehicles. The two others are financed no equity.I am not trying to be dishonest , just don't know what to do.

If you did not list the motorcycle, that is fraud and perjury...don't go that road.

If you own it outright and file chapter 7, you have a few choices.
1. Sell it and spend the money before filing BK
2. File BK, and pay the trustee the value of the Motorcyle.
3. File chapter 13 and reconcile the value of the motorcycle in the chapter 13 payment plan.
4. Surrender the bike in the chapter 7.

[shelly66]

So we can sell the motorcycle, or we can put it in our Chapter 13 plan. Where do they get the value if it has to put in the plan. What if we are not in 100% can we still put the bike in the plan? This is very confusing. My car will probably be repo'd before we file in July, so can I use the exemption for that vehicle?

[justbroke]

You don't put the bike in the Plan... you just need to pay at least the value of the bike, less exempted amount, to the unsecured creditors.

Example, the bike is worth $3,600. You are not able to exempt $3,600. You're in a 36 month Plan. You have unsecured credit over $35,000.

In the example, you'd need to contribute an additional $100/month to your Plan to cover the "equity" in the bike.

[shelly66]

we are going to be in a 60 month plan. Is the value trade-in or retail?

[justbroke]

we are going to be in a 60 month plan. Is the value trade-in or retail?

Depends on your District. I think you said Middle District of Florida. From what I read... they like to use retail. However, if it needs work or anything like that you can deduct that from the NADA Retail value.

[shelly66]

I don't think orlando is in Middle district, I am not in the same one as Tampa.

[justbroke]

I don't think orlando is in Middle district, I am not in the same one as Tampa.

Tampa, Fort Myers, Jacksonville and Orlando are all the Middle District of Florida. It's one of the largest Bankruptcy Districts in the Country.