Surrendered motorcycle

[adamsdoug]

I surrendered a Honda motorcycle when I filed chapter 7 which is going to be converted to chapter 13. What are my chances of getting it back in chapter 13 ?

[justbroke]

It partially depends on how quickly you converted and whether the lender has already sold it. Additionally, some Districts consider a motorcycle to be a luxury and "unnecessary" for reorganization. However, that doesn't mean you couldn't keep it in a Chapter 13; it just means that you keep it to the detriment of unsecured creditors.

I'm assuming that you have a car too? That would mean that -- even if you could -- keeping the motorcycle could drastically affect your payments in the Chapter 13.

Why are you converting? What's the fascination with the motorcycle?

[adamsdoug]

I didn't pass the means test. I have a meeting with lawyer in the am to see if I can use my mortgage payment to pass. Surrendered motorcycle as advised by my lawyer. If I had filed chapter 13 originally, would have never surrendered it. Was pissed when I got the "abuse" letter from the Trustee. If the mortgage payment is allowed in the means test then letting the motorcycle go would be worth it I guess. Maybe it is just "chapter 7 remorse" on the bike.

[justbroke]

It is probably remorse. I'm guessing that you included an expense for a mortgage on a property that your were surrendering in the Chapter 7. In most Districts, this would not be abuse. I'm also guessing that you're over-the-median as well, so you were subjected to "enhanced" scrutiny by the United States Trustee (UST). They actually look to make sure that your expenses are indeed allowable. I'm interested as to why your attorney allowed the UST to attack the Means Test (Form B22A) where it is clear that all secured debt is allowed.

Now, had the UST gone after Schedule J for a mortgage expense and did so under the totality of circumstances, you don't qualify for a Chapter 7... I could see that quite easily.

[adamsdoug]

I didn't include the mortgage payment because the house is going to be surrendered. We have moved out of the house, due to not wanting to feel like dead beats, although we still feel that way. By the way it looks, I should have used the mortgage payment and not our new rent payment. Hopefully it can be amended. I am new to all of this. Still feel like a piece of crap about filling chapter 7 but we are WAY upside-down on a house that, since I lost my job, we can't afford. Really wanted to file 13 but lawyer advised to "just go chapter 7 and get it over with." my wife has a good job, just not good enough.