Would Like To Keep Motorcycle - CH 7

[flhx1550]

I am getting ready to file, and have some questions that I would like some opinions on if possible.

I can file CH7, as I do qualify (it's close but possible) and that is the advice of my lawyer. I am able to keep current on the things I own (truck, motorcycle, rent) but am buried in interest on my Credit Cards and a post divorce consolidation loan.

That being said, I have a Harley (financed thru H-D) and I am 100% current, and havn't had any problems with payments. Also it is the one load I have that the vehicle is worth more than the balance of the loan (I owe 11k, bike is sellable at 14k).

Can I make a request to the trustee to keep it?

I plan on keeping it current, but what else can I do?

[HHM]

What you need to do is find out what the "auction" value of your bike is. If the trustee were to take it, he would sell it at auction, pay off HD, and use the remaining balance to pay your unsecured creditors. To give you some negotiating leverage, you need to find out what it is "really" worth. Every motorcycle owner I have ever come across ALWAYS overestimates the value of their bike.

That being said, if there is no exemption, and if there REALLY is equity in the bike, the ONLY way to keep the bike is to PAY the trustee that equity. This is why you want a more aggressive value for the bike. Right now, you estimate the bike has $3,000 in equity. For the sake of example, let's say that is accurate, then what you would due is offer the trustee $1,500 (it is best to have it as a lump sum, but many trustees will accept 6-8 months worth of payments). The reason the trustee may go for it is is gives them an alternative to the uncertainty and cost of selling the bike themselves.

Bottom line, you will need to PAY the non-exempt equity to keep the bike.

[wow]

There is a big gap between what you think it's worth verses what it's really worth. Don't get involved in valuing extras such as chrome paint etc. Resale value and trade in value wont play into the value anyway. Just use NADA as a reference source ,I personally used trade in value and was upside down and kept mine


Good luck

[flhx1550]

Well I am being realistic as far as what I "think" its worth if I sold it, because I get offers to sell it quite frequently.

Even with using KBB trade in it is 12,100, before any options/accesories

Unless there is a "Black Book" auction value site somewhere.

[Adventura]

WOW is right. H-Ds are currently going for pennies on the dollar. Use that to your advantage and value it at trade-in numbers.

I am in the same boat with my BMW (car). NADA may list it at one amount for a private party sale, but there is no way in hell that I am going to actually get that price. I know because I tried to sell it. Right now, due to the economy, the values listed on KBB/NADA, etc do not reflect reality. Prices are actually much lower since no one is buying, everyone is selling, and the banks are not loaning.

[flhx1550]

KBB Used Sell is approx 14k, NADA Used Sell is 13,200.

Im just trying to ask the questions I need to ask. I would rather keep it, just want to do it in a way in which is legit.

Lawyer only told me "trustees dont usually allow the motorcycles"

[NHC]

I wonder if it would help if you got the stealership to give you a trade-in value on it....we both know those come in pretty low...and in this case, the lower the number, the better....

[Adventura]

If you really want to keep it--I'd say do some serious homework. Go to an auction--a google search under "motorcycle auctions" yields plenty of hits--and see what the comps are. Write down what you learn and submit it. Treat it as you would if you were valuing real estate. What are similar bikes going for in reality?

But of course, you should also be prepared to pay the equity to the trustee in case they decide to take it. What state are you in? Is there really no exemption at all that you can use for the bike?

[flhx1550]

Well I have met with my lawyer, but it was only pre-liminary (still getting my cash together for him) but he is on retainer.

I live in Minnesota, and with keeping my truck (need wheels and Mn winters aren't motorcycle weather), he said I can't label it "primary transportation". Said it was all up to the trustee.

[Adventura]

Minnesota does not have any wildcard exemption, so it does look as if you cannot exempt it at all. I'd get the value as low as possible, and then have a back up plan to buy the equity from the trustee if necessary.

Best of luck to you on this. I'd be miserable if they took my bike away.