I'm still so confused about certain assets

[lckybch]

Please help me understand because I've got so much information in my head that my corneas are bleeding from reading so much and my brain is at capacity for its ability to sort through things.

We originally wanted to file Ch 13 to save the house. We have now decided to file Ch 7 and surrender if we need to. We have no equity any more in the house.

We have a boat. We owe more than its worth.
We have a camper. We owe more than its worth.
We have one car with a loan. So far upside down it could never see the light of day again.
2 other cars, one with salvage title (so not a clean title), one that has no equity.

We are current on everything except the mortgage payments.

Here is where I don't understand. If there is no equity in any of these items, luxury or not, then they are not an asset, correct?

If they are not an asset, would they truly be liquidated? We're interested in keeping them all and plan to continue to make the payments .

Or would we IIB them and then just keep making payments knowing the creditors would rather get the money than the stuff? Do we reaffirm them? Is the trustee going to sell them if the creditor would rather we didn't?

I'm just confused as to if we'd be permitted to even consider keeping them?

[2Bshinyandnew]

None of your upside-down items are assets. The original creditor would get it back and get whatever they could, and your CH7 bankruptcy would prevent the creditor from going after you the remaining balance not recovered from the sale of the secured item. This is one of the HUGE benefits of bankruptcy...discharge of liabilities on underwater secured debt. The trustee doesn't sell anything that doesn't result in a benefit to the bankruptcy estate.

Why would you consider continuing to pay on non-essential items (boat, camper) that are upside down after a CH7 discharge? Is there some sort of emotional or sentimental value to the items? It probably doesn't make good financial sense to begin your "fresh start" underwater.

Would you be allowed? Maybe. Depends on your expenses. If you have enough disposable income left after paying for necessities (housing, utilities, etc) to afford paying on boats and campers that have no equity maybe a CH13 would be a better option for you?

[lckybch]

None of your upside-down items are assets. The original creditor would get it back and get whatever they could, and your CH7 bankruptcy would prevent the creditor from going after you the remaining balance not recovered from the sale of the secured item. This is one of the HUGE benefits of bankruptcy...discharge of liabilities on underwater secured debt. The trustee doesn't sell anything that doesn't result in a benefit to the bankruptcy estate.

Why would you consider continuing to pay on non-essential items (boat, camper) that are upside down after a CH7 discharge? Is there some sort of emotional or sentimental value to the items? It probably doesn't make good financial sense to begin your "fresh start" underwater.

Would you be allowed? Maybe. Depends on your expenses. If you have enough disposable income left after paying for necessities (housing, utilities, etc) to afford paying on boats and campers that have no equity maybe a CH13 would be a better option for you?

My husband is a disabled vet, we don't have to pass the means test and can file CH 7 regardless of income. A CH 13 would only be something we want to do if we want to save the house, which we have decided to surrender.

If we let everything else go, including the house, we can afford to rent and pay for the other things if we wish. As for being in a negative equity situation, while we do owe more than the boat or camper are worth, its not significantly more.

I would let the car go if I thought I could get reasonable financing on another one any time soon. Our credit is shot at this point, so I don't think I could. The minivan has very low miles, is in fairly excellent condition, and just had new tires put on due to defective original tires.

These are all things that he and I are thinking about, though, so thanks for the information