SAILBOAT MAINTENANCE during bankruptcy

[SURV69]

Well it's almost November in northern Ohio and my sailboat is still in the water.

First off, I'm finding it hard to have the money to have it hauled out and then to store it(a total of about $650).

The boat is said to be worth about $4000. I paid $2000(maybe $2500), two years ago and advertized it for sale at $1500 with no takers . . . although a lot of lookers. Even after dropping it to $1200, I still had no takers, although it peaked more interest.

SO . . . I'm thinking I have a sailboat which is worth about $1200-$1500.

I can protect $500 of it and use my wildcard of $1075 to complete the protection. I figure the costof haulout & storage actually reduces the trustees interest by $650 and I might actually protect the value at about $500, which will leave the 1075 to protect a different asset

BUT, the boat in essense has a lower value as long as it's in the water and whoever winds up with it(me or the trustee), it will have to be hauled out and stored. I see no reason to do these services since doing so will actually make it more reasonable for the trustee to take it.

Does anyone know if there's a process in place for the haulout and storage to take place without descreasing my protection and/or increasing the item as an asset?

ALSO does anyone know if I can sorta "force" the trustee to take the boat, if I drop all my protection on it . . . forcing the trustee to fot the bill for haulout & storage?

[backtoschool]

In this thread you say that your GPS is your only asset.

http://www.bkforum.com/showthread.php?t=47252

I am confused.... Is the sailboat yours?

If you have equity in the sailboat, then it will need to be exempt or the trustee will be interested in it. But if you have very little equity and it will cost the trustee money to get at and sell the asset, then the trustee may abandon it.

[AngelinaCat]

Actually, I tend to think after the trustee looks at it a bit, and at all of the maintenance and ancillary services that a boat needs, he will probably either (1) offer it to you to purchase back from the BK estate at a discounted rate, or (2) file a petition with the court in which he formally 'Abandons Interest' in it as an asset.

I think that the latter scenario is more likely, as taking an asset that has so much that has to be done with it in order to care for it, is akin to trying to take a car that still has a mortgage on it. 'T'aint gonna happen. Some wag somewhere coine this truism: "a boat is a wood-lined hole in the water into which you pour money." So true.

Good luck, and fair winds~~~

[SURV69]

backtoschool

The boat is an asset if I wish to make it so. I own outright.

The GPS system is an asset no matter what.

I only have a total of $3100 available protection for it.

Used, this system sells . . . used, from equipment suppliers, for about $16,000 and although I see the listing(at $16,000), they aren't moving in this economy. They might as well be priced at $30,000 since they're not selling anyway(lkinda like boats . . . especially sailboats).

ANYWAY the equipment seller offers about 1/3 the value for things he buys. So I'm figuring I could get about $6,000 for it and possibly less since any cleaning and such to bring it completely up to snuff reduces the value.

In any case I don't expect to keep but wouldn't mind making use of it's value to protect my $3100 interest in it(hopefully #3100 in my pocket).

[Chowder]

Maybe I missed the size and make. But if no takers at 12 to 15, I'd subtract any needed maintenance costs from that, and use whatever total you come up with as a value.

Can't imagine too many in the market for a small sail in Ohio with winter coming.
You could really low ball this thing.

[SURV69]

In essense, the cost of the haulout and storage has already reduced the value of the boat.

BUT . . . sooner or later "someone" has to pay to have this maintenance done. Whoever pays to have this maintenance done(trustee or me) will suffer the further loss of net gain. and winter . . . is coming . . . with ice.

If the boat is worth 1500 and needs hauled, then at this time it's worth about 1000 or less.

If my bankruptcy doesn't become discharged before January(a virtual guarantee), then IF the trustee abandons the boat it will be too late to have it pulled and the boat might suffer damage during the winter.

If I pay to have it hauled, the value will be about 1500 or so(to my creditors), look more appealing to the trustee and I will suffer the loss of $650+ which is at the limits of what I can bear right now.

I don't know of a way to pay the $650 and then to reduce the boat value by that same $650. I just don't think a process exists to allow the debtor to pay for needed maintenance and to make allowance for that expense. Kinda like getting the shaving cream back into the can.

I'm hoping that as soon as I have the creditor's meeting to have time to either pay the haulout or know to walk away from the boat . . . making the trustee pay for haulout.

[shabam]

If my bankruptcy doesn't become discharged before January(a virtual guarantee), then IF the trustee abandons the boat it will be too late to have it pulled and the boat might suffer damage during the winter.

If you have not even filed yet I highly doubt you will be all done by January. Early February is probably the earliest time you are looking at being discharged. That's if you were to file this week of course.

[SURV69]

Let me restate my dilemma and my thoughts.

I hope to leave the boat in the water, which devalues the boat by about $650 andmakes the boat less inviting to take.

I "hope", that "something" takes place in the 341 meeting that makes it reasonable to then pay to have the boat hauled out and stored.

What I don't know is . . . is the 341 meeting a detent occurance? That is on that particular day, if the trustee passes on the boat(as is) and a creditor does not otherwise talk him into taking action on the boat, am I free to pay for it's needed maintenance with no fear of increasing it's "value" between the 341 meeting and full discharge?

It's important that the maintenance is NOT PAYED FOR before the 341 meeting, since that would turn the bill(if I have it billed), into an unsecured creditor.

BY not asking for, contracting for or paying for the haulout and storage, these bills have not been incurred and would not be an issue in the actual schedules within the bankruptcy.

I'm not bankruptcy savy, but I get the impression that creditors have a time-period after the 341 meeting to make claims upon the trustee, which could mean asking for and paying for the maintenance(after the 341 meeting), might increase the value of my boat enough for it to be considered by the trustee.

If this is not true, then I would, after the 341 meeting, request the haulout(being billed $200), then pay for the haulout, then request the storage(being billed $450) and then paying for the storage.

[HHM]

When it comes to the boat, you don't have to worry about creditors, you only need to worry about the BK Trustee. The trustee needs file his initial report within 10 days of the 341 meeting, that is your window. If the trustee files a report of No Asset within that 10 days, you are generally in the clear.