CH13 and holding on to a Boat or other asset?

[Flying2BK]

Getting ready to file 13.

Wondering if they let me "buy back" my boat will they allow 300-450 a month in storage costs? I have no problem with the buy back and paying more to the creditors....just wondering if the Trustee will go for that? The cheapest storage I can find would be $150 and away from where I live. Just might sell the boat and forget the whole deal.....what say you all in forum land?

My reason for filing is my house that I need to get out of. My unsecured debt will more then likely be 100% payback.

[HHM]

Nope, not likely.

I guess I don't understand what you mean by "buy back". But the trustee will never allow a 300-450 storage payment unless you are already in a 100% payback plan to unsecured creditors. Keep in mind, if your chapter 13 is to get out of a house/mortgage, the deficiency becomes an unsecured debt at that point; would you still be 100% once you add that debt?

[enginegirl]

during my 341 hearing the trustee ridiculed the man prior to me for wanting to keep his boat..... he wanted to pay back his unsecured debt at 100% and strip his 2nd mortgage and cram down his car payment.... trustee said absolutely not sell the boat .....get rid of the dock fees etc and pay your other stuff.... in fact she was so angry with him she dismissed him....
basically she said unless you are a fisherman or a dive-master the boat is a luxury....

[Limitman]

Let the boat get repoed and then got to the auction and buy it back. I owed $26000 on mine and it sold at an auction for $10000. To be honest it was great to get rid of the boat and actually I have another one now that's much cheaper to operate. My lawyer said that I might be able to keep the boat if I were to get a second job and maybe somehow convince the trustee that I could make the payment. She also said that your plan must be written up in "good faith" meaning are you doing everything you can to pay back what you owe, keeping boat no, letting it go yes.

[Flying2BK]

I guess I should be more clear.....

I OWN the boat outright....no liens or loans. I actually found a storage place for $100 a month down from the $500 I am paying now.

I need the boat for storage and I am in the process of restoring it. I live on a boat (another one I own free and clear) and that one will be exempt with the slip fees....just trying to keep the other one for storage space and as a hobby/recreation/entertainement.

Would they go for $100 a month?

I am in Texas

[Flying2BK]

Nope, not likely.

I guess I don't understand what you mean by "buy back". But the trustee will never allow a 300-450 storage payment unless you are already in a 100% payback plan to unsecured creditors. Keep in mind, if your chapter 13 is to get out of house, the deficiency becomes and unsecured debt at that point; would you still be 100% once you add that debt?

That is the Million dollar question. We (My attorney and I) think that the defciency will not be that much I owe about what it is worth...unless they give it away?

It looks like it would cost me $100 a month for storage (I own the boat outright)

Thanks to all in advance!

[Flying2BK]

Let the boat get repoed and then got to the auction and buy it back. I owed $26000 on mine and it sold at an auction for $10000. To be honest it was great to get rid of the boat and actually I have another one now that's much cheaper to operate. My lawyer said that I might be able to keep the boat if I were to get a second job and maybe somehow convince the trustee that I could make the payment. She also said that your plan must be written up in "good faith" meaning are you doing everything you can to pay back what you owe, keeping boat no, letting it go yes.

Letting the boat get repoed wont work since I own it. (I can repo it myself?) ha ha!

I just want to place it in the non-exmept bucket and see if I can really afford to keep it during the BK process. $100 a month storage seems reasonable. I have $71.5K a year income, single and very low living expsenses. I am looking at a pay increase sometime next year (fingers crossed)

[HHM]

There are 2 issues with a non-exempt boat (owned out right)

1. The reconciliation value. If you sold it, how much would it "realistically" sell for. Your creditors must at least get that much over the life of the chapter 13 plan. This issue does not sound like it will be a problem.
2. No matter how you slice it, boat ownership is a luxury in BK unless you earn your living from it (fishing, diving, etc). The ONLY chance you have is if you are 100% plan. But even then, as a previous poster mentioned, they don't have to let you pay that storage expense. The guiding rule in chapter 13 is that the debtor devote ALL disposable income to the chapter 13 plan. So, even in a proposed 100% pay back plan, the trustee may still object to the storage and upkeep cost of the boat because keeping it is neither reasonable nor necessary for the debtors reorganization.

The work around is...pad your budget and spending discipline. There are certain categories of spending that can be padded, or conversely, that you can establish an amount that is reasonable and through spending discipline, spend less than what is budgeted. Do you have a relative or friend that will pay the storage cost, or at least be willing to put in writing that they will pay the storage cost? If so, you put that in the chapter 13 plan and usually you won't have a problem.

[Flying2BK]

There are 2 issues with a non-exempt boat (owned out right)

1. The reconciliation value. If you sold it, how much would it "realistically" sell for. Your creditors must at least get that much. This issue does not sound like it will be a problem.
2. No matter how you slice it, boat ownership is a luxury in BK unless you earn your living from it (fishing, diving, etc). The ONLY chance you have is if you are 100% plan. But even then, as a previous poster mentioned, they don't have to let you pay that storage expense. The guiding rule in chapter 13 is that the debtor devote ALL disposable income to the chapter 13 plan. So, even in a proposed 100% pay back plan, the trustee may still object to the storage and upkeep cost of the boat because keeping it is neither reasonable nor necessary for the debtors reorganization.

The work around is...pad your budget and spending discipline. There are certain categories of spending that can be padded, or conversely, that you can establish an amount that is reasonable and through spending discipline, spend less than what is budgeted. Do you have a relative or friend that will pay the storage cost, or at least be willing to put in writing that they will pay the storage cost? If so, you put that in the chapter 13 plan and usually you won't have a problem.

Good info HHM,

Where can I go look at cost of living items? I know some talk about some means test online, but I want to see what are the allowable options?

Gym Membership?
Pet Services?
Food Allowance?
Ect?

Many thanks to you for helping out....I am sure a few lurkers are thankful too!

[HHM]

Good info HHM,

Where can I go look at cost of living items? I know some talk about some means test online, but I want to see what are the allowable options?

Gym Membership?
Pet Services?
Food Allowance?
Ect?

Many thanks to you for helping out....I am sure a few lurkers are thankful too!

You need to hire a lawyer for that. Only a very good bankruptcy lawyer in YOUR area can give you an idea of what will work.