I'm filing for a 7 in three months but can I do this?

[AllMyFault]

I was thinking about buying a motorcycle to save on gas for a new job that requires a lengthy commute. Would that look bad if I went out and bought a motorcycle on credit three months before filing and would I be able to keep it and my financed car through the BK?

[AllMyFault]

Would the worst case scenario be that I may have to give it back to the creditor after filing?

[drowning123]

Folks around here say 90 days is the window for large purchases, but I don't know. Good luck with that. It's good that you're waiting for 90 days to pass, but that's still cutting it close in my opinion. If you're re-affirming them, then maybe it won't be so bad.

[AllMyFault]

Well, if I had to give it back and couldn't reaffirm it wouldn't kill me...at least I would get three months of use and savings out of it.

I'm only concerned with looking 'crooked' to a judge. "Why did you buy a motorcycle 3 months before filing BK?"

[justbroke]

There's no window for purchasing "secured" debt since the purchase is secured by the item that you are buying. However, I would say that buying a house full of furniture on credit -- although it too is secured -- would probably be seen as a "bad faith" bankruptcy filing, but I digress.

The problem will be that if you're filing alone, you may not be able to keep "two" vehicles. It's just that simple. You actually have a perfectly reasonable reason to buy, but it may not be reasonable to have two vehicles. This is where consulting with a few attorneys and asking this specific question, will help you. Of course, they'll tell you that they can't tell you to buy or not to buy, but they can help you with the impact of the decision to buy.

[AllMyFault]

There's no window for purchasing "secured" debt since the purchase is secured by the item that you are buying. However, I would say that buying a house full of furniture on credit -- although it too is secured -- would probably be seen as a "bad faith" bankruptcy filing, but I digress.

The problem will be that if you're filing alone, you may not be able to keep "two" vehicles. It's just that simple. You actually have a perfectly reasonable reason to buy, but it may not be reasonable to have two vehicles. This is where consulting with a few attorneys and asking this specific question, will help you. Of course, they'll tell you that they can't tell you to buy or not to buy, but they can help you with the impact of the decision to buy.

Thanks...
I am filing alone and I know that keeping two vehicles probably will be an issue and as I said if it turns out that I will have to turn in the motorcycle than so be it. I just don't want to look bad to the judge for buying it just before filing that's all.

[AllMyFault]

My attorney has said that he thinks it will be fine but I want to make sure that turning it in will be the worst case scenario. I've heard of cases being denied on here for stuff like this so I'm a bit worried.

[justbroke]

As stated, you have a perfectly reasonable explanation, although it begs the question... why keep the car then? Perhaps the motorcycle is more than just for commuting.

[AllMyFault]

As stated, you have a perfectly reasonable explanation, although it begs the question... why keep the car then? Perhaps the motorcycle is more than just for commuting.

Well, when it rains and or I am driving my three daughters around I kind of need a car.
Will I be questioned / interrogated by a judge like that? My attorney makes everything sound so easy that it concerns me.

[AllMyFault]

So, my real question I guess is:
If I go buy this motorcycle is the worst case that I will have to give it back the the creditor?
Can a judge deny my bk on this?

[justbroke]

Well, when it rains and or I am driving my three daughters around I kind of need a car.
Will I be questioned / interrogated by a judge like that? My attorney makes everything sound so easy that it concerns me.

I'm not sure if you'll be interrogated. It's usually the Trustee who has the bone to pick with your expenses, not the Judge. Again, you have a perfectly reasonable explanation. Whether the expense will be challenged by the Trustee is too subjective to tell. Are you over the median income? If so, then you'll get more scrutiny on expenses.

I just wanted to give you a preview to the type of scrutiny that it might bring. No one can tell with certainty if it will even be mentioned. If your attorney is comfortable and will fight for you, then you should relax. Worse case, you surrender the motorcycle!

[AllMyFault]

Thank you for all your advice.
No, definitely not over the median income.
I kind of have a similar issue with a 10 year old motorhome as well. My father in laws lives in it on my property and pays me $600 per month to do so. My payment on it is $370 so we will be asking for some sort of an exception there as well.

[tyson24]

You will have to claim it as income. It is basically having a renter even though it is family.

[AllMyFault]

You will have to claim it as income. It is basically having a renter even though it is family.

Right, and I'm still below the median income allowed but will they allow me to keep the 'vehicle'?

[justbroke]

The only question on the motorhome, will be if it's a "motor vehicle" or a "residence". If it's a residence, then it's no different than an investment property. You can keep it because your payments are on time and you operate it as a business -- by renting it out. Any excess you have after paying the monthly payment and any taxes and other fees, would be "income". In Florida, they tend to go by... if it moves, it's a motor vehicle. If it is relatively permanent and doesn't move, it's a motor "home".

Anyhow, this is a great question for someone that has dealt with this in California.