Asset question for chapter 13

[95kindebt]

So, **if** we have a gun collection worth about 30k, and want to keep it, then we need to list it as an asset, and the 30k is added into our 5 year plan, is this correct?

Thanks

[justbroke]

Technically, yes. It only means that you must pay your unsecured creditors, at least as much as they would get had the Trustee sold the collection, and the Trustee disbursed the money to the unsecured creditors.

In other words, if your Plan is for 60 months, your disposable monthly income is already $500 (or more), and your Plan pays $500/month (or more) to unsecured creditors, then you are all set.

The problem only comes about, say, if your disposable monthly income was $100/month. Over 60 months, that's only $6,000. Since it's less than the $30K minimum required, you would need to commit another $400/month to your plan to pay the unsecured creditors.

[pcn]

Of you could sell it, and if you could show that you spent the proceeds for living expenses you wouldn't increase the plan. You would need to have some receipts to back up the claim. This is what several lawyers told us. Of course it would take some time to use up 30k on living expenses. Is the garage sale/quick sale value really 30k?

[catleg]

Better yet would be to take out a secured loan using the guns as collateral, then pay it back inside your plan. That way you wouldn't lose the bid/ask markup of selling the guns assuming you wanted to buy them back later.

Then of course you need to spend the loan proceeds on an exempt asset or in some other approved way, such as living expenses, lawyer fees, student loan payoffs etc.

[95kindebt]

Of you could sell it, and if you could show that you spent the proceeds for living expenses you wouldn't increase the plan. You would need to have some receipts to back up the claim. This is what several lawyers told us. Of course it would take some time to use up 30k on living expenses. Is the garage sale/quick sale value really 30k?

My husband said they're worth 30k, not sure if thats 30k quick sale, or 30k with someone who knows guns.

What value do you put in?

We also have 2 fort knox gun safes that are about 10k alone. forgot about those.

I'm worried the trustee is going to come to the house, so we're being nothing less than honest.

[justbroke]

My husband said they're worth 30k, not sure if thats 30k quick sale, or 30k with someone who knows guns.

What value do you put in?

What you think they are worth in the market.

We also have 2 fort knox gun safes that are about 10k alone. forgot about those.

Ouch!

I'm worried the trustee is going to come to the house, so we're being nothing less than honest.

If you have assets that need to be "sold" or are non-exempt, the Trustee will probably send an appraiser to the house to look at those specific items.