Can I keep my boat?

[freakedout]

We are just organizing to file and hoping to go chapter 7. Have had one meeting with attorney. Waiting for some income to fall off before filing. My question is.. we own a boat that we are upside down on. If there is no equity and we are current on the payments, will we be allowed to keep it. payments are small so after everything is done, we could afford.

[whipster1]

A boat is considered a luxury item. I doubt if the trustee will like that, when those payments could be going towards those wonderful unsecured credit cards. Best to surrender and get another one after discharge.

[MrSmithster]

whats the boats value? how much you owe? i kinda agree with Whipster, if it was a car, no prob, but a boat? unless you live in a state that has a very generous exemption limit, i think it would be hard to ride it thru. also, i wouldnt want to show at my 341 claiming hardship, yet asking to keep my boat. look at it from the point of your creditors, you dont want to pay them, but you want to keep paying for a boat that isnt even worth the loan value, while they get squat. maybe you need to boat for biz or work transportation? then you have a chance, but otherwise sounds like a flag to me

[MrSmithster]

also, where is the value in paying for something that isnt worth what your paying? good business decisions require taking emotions out of the equation(yes i learned that very late in life, like last month). knowingly paying more for a something than it is worth is not good business

[RGMLM]

We are just organizing to file and hoping to go chapter 7. Have had one meeting with attorney. Waiting for some income to fall off before filing. My question is.. we own a boat that we are upside down on. If there is no equity and we are current on the payments, will we be allowed to keep it. payments are small so after everything is done, we could afford.

I also have a boat and will be filing chapter 7 shortly. my attorney said the trustee will zero in on that item very closely and to just let the boat go. Others my want to chime in on this, but I suppose if your really wanted to keep it you could just keep making payments before, during and after bk - I don't know - consult your lawyer.

[Never_Again]

You have no equity in the boat. Therefore, there is no asset to exempt. As for the expense on your schedule J, yes, it is a "luxury" item, but it is also a secured creditor. You probably will be able to keep it, although being upside down on it, does it make good business sense?

[jessica0607]

I have an old boat (1981 mako ) that the attorney told me I could redeem but the trustee will probably send someone out to look at it for a fair value - mostly the outboard since in a boat this old the money is mostly tied up in the motor. Mine books at probably $2,500-$4000 tops but if I had a new $15,000 outboard would be a different ball game. My motor is an old 1995 model so not worth much plus bad trailer brakes. Obviously, I owe no money on my boat. You may want to let your boat go and try to pickup something on craigslist used and then repower if necessary or if things turn around for you later - my .02.