Guns and Chapter 7?

[95kindebt]

My Husband has a gun collection that he takes great pride in. The only reason we would file chapter 13 vs. Chapter 7, is so that he could keep his prized gun collection.

If we file chapter 7, what would happen to the gun collection? Are their any exemptions?

[JRScott]

It would depend on your state's bankruptcy exemptions in a Chapter 7 if they have a gun allowance or a wildcard you could use that, otherwise you couldn't save it.

In the Chapter 13 you could potentially save it.

The main thing is you need to know the value of the gun collection, that's something he should start working on now. It is possible that you could still do a 7 and keep the gun collection if you can pay the trustee their value (or what he asks for). Many trustees will do payments for this.

[95kindebt]

thank you so much for responding, I really appreciate it.

[justbroke]

As JRScott has accurately put it, this depends totally on the value of that collection, and how much you can exempt. This actually is for either a Chapter 7 or a Chapter 13.

[jadams]

Double check to make sure it's really worth what he thinks it is. It sounds backwards to say, but hopefully it isn't quite that valuable and he will have a better time keeping it.

My attorney advised me to use values for what a regular sales person / auctioneer could get for the items in a reasonably quick general sale. Not what a person with extensive knowledge of gun collecting, with extensive connections, could sell it for.

We all tend to think of things as worth more than they probably are because we remember what we paid for them and they are sentimental.

[95kindebt]

Double check to make sure it's really worth what he thinks it is. It sounds backwards to say, but hopefully it isn't quite that valuable and he will have a better time keeping it.

My attorney advised me to use values for what a regular sales person / auctioneer could get for the items in a reasonably quick general sale. Not what a person with extensive knowledge of gun collecting, with extensive connections, could sell it for.

We all tend to think of things as worth more than they probably are because we remember what we paid for them and they are sentimental.

Thanks so much. I'll look into that as well. He's really hesitant to file because he doesn't want to loose his "toys" because of mostly debt I racked up. We just don't see a way out, without loosing everything.

[justbroke]

Well, some guns are just downright expensive. If it is truly a "collection", then these weapons do have significant value. There are many handguns alone, that are worth over $500 used. Then, get into the various rifles...

[AngelinaCat]

We listed ours in our Ch7. We are in Florida and had no exemptions or wildcards to use. We are an Asset Case and got to purchase our guns, along with some other things, back from the Trustee.

One thing we learned in trying to assign a value is that it can be difficult. In our case these are vintage guns. They are old, but not quite old enough to be antiques. Nor do they have any type of history associated with them that would make them more valuable, as if you had the gun that Custer had used in the Battle of Little Big Horn--that sort of thing.

We also learned that while there are people interested in owning vintage guns, they generally are not up to the wear and tear that modern ammunition can cause. Several people that we showed some of them to in an attempt to sell them, thought they were 'nice', but they wanted a good serviceable firearm that they could use today and keep using.

I hope that helps.

[95kindebt]

he has a MP5K, and an AR15. and a few handguns, so we're worried.

[95kindebt]

do if you're an asset case, chapter 7, then you can purchase things back from the trustee? How does this work, you pay them cash back for these things?

[justbroke]

he has a MP5K, and an AR15. and a few handguns, so we're worried.

Yep! I was going to list similar weapons (FN/AL, M4, etc)... but didn't want to frighten people that "justbroke" knows about guns. LOL

Anyhow, that MP5K is probably worth upwards of $10,000 alone. The AR15 (stripped) is probably at least $1,000. Several handguns that are probably worth $500 each easily.

Yes, this can be an issue fore sure! You will probably have to buy them back from the Trustee in a Chapter 7.

do if you're an asset case, chapter 7, then you can purchase things back from the trustee? How does this work, you pay them cash back for these things?

If the Trustee determines the value is $10K, they may offer to have you buy it from them for $8K (saves them the time to get it sold, pay commissions, and actually... wait to sell it).

You then pay the Trustee the $8K in order for your case to close. They usually allow payments over a 12 month period.

[AngelinaCat]

We paid our trustee $450.00 a month for a year to buy our stuff back. It is an agreement that is proposed to you. Dollar amount can vary. If you agree to it and can afford it, the paperwork will be submitted to the judge who will then sign off on it.

[mike258]

The only good thing about firearms is they tend to have a low value. The trustee would need to sell firearms to a licensed firearm dealer (at least that's the way it is in MA) and he would get nowhere near retail value.

I have a rifle that costs $1,200 new ($900 used) and my lawyer valued on my schedule at $450.

[justbroke]

The only good thing about firearms is they tend to have a low value. The trustee would need to sell firearms to a licensed firearm dealer (at least that's the way it is in MA) and he would get nowhere near retail value.

I would agree for your common everyday Colt, Sig, Glock, etc.

I have a rifle that costs $1,200 new ($900 used) and my lawyer valued on my schedule at $450.

Well, an MP5K is a totally different thing. It is special and is of significant value. It actually has significantly appreciated in value since the Assault Weapons Ban of 1986.

I'm willing to bet $1, that the Trustee could sell an MP5K for $8K in less than 10 days.

[mike258]

Well, an MP5K is a totally different thing. It is special and is of significant value. It actually has significantly appreciated in value since the Assault Weapons Ban of 1986.

I'm willing to bet $1, that the Trustee could sell an MP5K for $8K in less than 10 days.

Yeah that post about the MP5 was made while I was typing my post, so I didn't know what types of firearms the OP was talking about.