Bankruptcy and Luxury Item
Sorry, when it comes to bankruptcy and luxury items you probably won’t be able to keep the yacht and the jet skis. Then again, it all depends upon your individual case.
If you are filing for Chapter 7 you probably won’t be able to keep any of your assets. Those filing under Chapter 13 might be able to keep various items, though keeping them might change the amount that you owe to creditors. Under Chapter 13 there are some things that are considered essential for living, and there are some things that are considered frivolous. In order to determine what will happen with bankruptcy and luxury items regarding your particular case, it is wise to hire an attorney.
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Chapter 13 states that you can keep things that are considered essential such as your home and your car. Since these things are needed in order for you to function daily, they are considered necessary items. Additionally, you may be able to keep property that provides income depending upon the plan that you and your attorney come up with. Luxury items might be kept if your current plan will pay off all debts. Basically, you must be able to pay off all of your unsecured debt (such as credit card bills) before you can make any payments on luxury items after filing.
If you come up with a plan that effectively pays off all unsecured creditors you can continue to make the payments on luxury items. The idea is to pay off those unsecured creditors prior to making payments on items that you do not need. Obviously, if you rely upon your boat to bring you to and from work every day, this might be considered a necessity. Really, all bankruptcy cases completely depend upon the individual, so no amount of free advice will apply directly to your case. If you want to find out how bankruptcy and luxury items affect your particular filing, you must hire an attorney.
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Do not attempt to go through bankruptcy on your own. There are lots of laws, rules, and details that you might miss if you do not hire a lawyer. While the advice in this article might be general and helpful, it is not meant to be taken as legal advice.
As you can see, the way that bankruptcy and luxury items are affected will greatly depend upon your individual circumstances. Consult with an attorney, figure out a good plan, and then decide what to keep and what to sell.