NFL season tickets & timeshares

[basketsbears]

Hi,

My husband and I are considering BK will prob be a ch 13, although not sure. Just wondering what happens to season tickets ( if there is a season!) and two fully paid timeshares that we can't give away?

[Pandora]

hi basket

I would think they'd be considered assets and you'd either have to exempt the values or if you cannot exempt them fully, the non-exempt overage would be put into your Ch. 13 plan and you'd have to pay it that way. If you cannot afford to repay what you cannot exempt, then generally you'll turn them over for the trustee to liquidate and distribute $ to creditors equally (after you get your allowed exemption).

The Ch. 7 liquidation test applies for Ch. 13's.

[basketsbears]

Everything is paid for. The football tickets for upcoming season were $1380. The timeshares are paid in full. all we pay on timeshares are taxes and maintenance fees. I would love to give up timeshares. Would like to keep Colts tickets.

[Pandora]

Everything is paid for. ...

That's why they're assets; the above will apply. In order to keep the things you want, you must either exempt them fully or if partially, you will have to pay to keep them, regardless if they're paid off or not.

Thats how minimum base plans are created in a CH. 13; ours was created due to assets we owned and wanted to keep.

[HHM]

Your chapter 13 would need to pay at least the value of those assets over the life of the plan. So if you have $10,000 in assets that aren't exempt, the minimum that MUST be paid over the life of the chapter 13 is $10,000.

The key for the type of assets you have (season tix and timeshares) is to not overestimate the value. The timeshares are probably worthless, meaning you probably couldn't sell the for more than $100, the NFL season tix, at least right now given the contract issues, may not be worth very much, but you need to look at the transferability. It's one thing to sell the individual game tickets, but it is another to sell your season ticket rights.

[basketsbears]

Sorry to be so dense, but in regards to transferability what do you mean? They may be able to be included in wildcard I would guess.

I know the tickets are probably not huge in the big scheme of things, but just am trying to figure everything out.

Thanks!

[HHM]

It is common in the season ticket agreement to limit the transferability of the right to season tickets. In general, with season tickets there are two aspects to the purchase. (1) are the physical tickets with which you can do whatever you want once you get them, use them, put them on stubhub etc). (2) then there is your priority as a season ticket holder, this is your right to buy next years tickets, etc, and other benefits. Usually there may be a limit on the transferability (in fact, there almost always is) of the future right to those season tickets. So that aspect of season tickets has no value. In chapter 7's, most season ticket agreements automatically rescind.