Fine Art on the credit card

[1pomofo]

I put some fine art on a credit card a couple of years ago. I have been paying it down, but the other cards have been drowning me. I have about 55k in cc debt, part of which is the art. Will they want to repo that on a 13 ?? I am just in the beginning stages of considering BK as a way out.

[JRScott]

What date did you charge the fine art?

What is the value of the fine art?

What type card did you use....store card, MC, VS etc?

Do you have the fine art insured?

[1pomofo]

The date was around March '07. The appraised value is approx 50k. I'm not sure how it was financed in the beginning, but it's HSBC and BofA (transferred balance) right now. Yes, it is insured. Thanks JR !!

[keepmine]

One reason people file a 13 is to keep assets. If you can meet the plan requirements for your 13, you keep the art.

If you have $55k in cc debt and a painting worth $50K, do yourself a favor and sell the painting and avoid a bk.

[1pomofo]

I have been trying to sell for 6-8 months...no buyers

[keepmine]

I have been trying to sell for 6-8 months...no buyers

Then, it's not worth $50K. What could you realistically sell it for?

[1pomofo]

Right...that's what the "appraisals" say. I wouldn't want to sell it for less than what I paid, which is about 35k. There's five pieces 7-8k each. About 18-20k left to pay off.

[falken]

If you could afford around a $1000/mo chapter 13 payment (on top of the rest of your bills - except unsecured), you should be able to keep the art. Lots of variables to that, just a ballpark. You will have to be in a 100% payback plan.

[JRScott]

The date was around March '07. The appraised value is approx 50k. I'm not sure how it was financed in the beginning, but it's HSBC and BofA (transferred balance) right now. Yes, it is insured. Thanks JR !!

Okay in those cases the credit cards would not have secured interest in the art. When was the balance transfers though?

That brings us to the next problem. 50k appraised value and I assume insured for the same amount. That's a considerable asset. No way you'll get Chapter 7 and keep this asset.

So you need to consider Chapter 13. Also you'll need a 100% payback in the Chapter 13 plan to keep it. Don't think about trying to hide the art either if its been insured the trustee will find out.