Consumers interested in filing bankruptcy may come across myths and misconceptions that cause confusion. For instance, some are under the impression that as soon as they file bankruptcy they must surrender their assets. This isn’t true and it’s not often the case. If you have a motorcycle it is likely you’ll be able to keep it with a few things being considered.
When you file bankruptcy it is important to understand whether or not your motorcycle is a reasonable expense. When you file you are required to list all outstanding debt, expenses and your income. This gives the court background details about your financial situation and will refer to data submitted throughout your case. Reasonable expenses may include what payments are made to creditors each month along with household expenses. Depending on how much income a debtor has at the end of each month may determine if they qualify for Chapter 7 or Chapter 13 bankruptcy .
It often depends on the situation of the debtor. If you are making payments on the motorcycle and want to keep it, you may need to review your finances and see where changes can be made. If the motorcycle serves more purpose, such as you use it to ride to and from work, your chances for being able to keep it may improve. This may affect how a Chapter 13 payment plan is developed if payments made on a motorcycle could serve another debt purpose. In short, the motorcycle may be seen as a toy by the court if the expense being put toward it doesn’t have reasonable means.