QUESTION
Can I retain my property in a chapter 7 bankruptcy?
Asked on Dec 05th, 2011 on Bankruptcy - California
More details to this question:
In August my in laws gave us a 1986 camper as a gift. If my wife and I file chapter 7 bankruptcy will we be able to keep it? If not can we get in trouble for giving it back to them? They would definitely be mad if it was taken as it was an inheritance to them from my mother in law's diseased brother.
18 ANSWERS
The property one can keep in Chapter 7 bankruptcy has to do with the applicable exemptions available when and where you file bankruptcy.
Answered on Dec 14th, 2011 at 4:30 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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If you transfer property to a relative or friend within one year of filing the trustee will seize it and sell it for the creditors. However, depending on the value of the property you might be able to claim the asset as exempt in order to keep it. Consult an attorney as to whether your property qualifies as exempt.If the property is non exempt you can still keep in if you file chapter 13, which is a payment plan.
Answered on Dec 07th, 2011 at 8:48 AM
Daniel James Wilson
Is the camper a motor vehicle? In Colorado ch 7 debtors get a $5000 exemption for motor vehicles. A married couple filing jointly can claim $10000 exemption. Different states have different exemptions. If your camper is not exempt you can buy it back from the trustee. You cannot simply reconvey back to your parents. That is called an avoidable transfer and trustee could get it back.
Answered on Dec 06th, 2011 at 6:27 PM
Bankruptcy Attorney serving Columbus, OH
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Athena Legal, LLC
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It depends on the value of the camper and whether you need to use your exemptions on another vehicle. You should not transfer the camper back to your family at this point because that could be a fraudulent conveyance. The best thing to do is to speak with a bankruptcy attorney who can better assess the answer to this question.
Answered on Dec 06th, 2011 at 5:57 PM
In a Chapter 7 you are able to retain certain assets as long as you can exempt those assets per the bankruptcy statute. Such items can range from household goods, clothing, vehicles and yes even a camper. You need to determine the value of the camper so that you properly list it and then exempt it's value in your schedules.
Answered on Dec 06th, 2011 at 4:48 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Depends on its value and other assets you hold. Transferring it back would be a fraudulent conveyance and a good way to lose it and your discharge.
Answered on Dec 06th, 2011 at 4:37 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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You can keep the camper if it is exempt in your bankruptcy. Whether or not it is exempt depends on what other property you have and want to keep. If you do not need to exempt equity in a home, you will have an exemption in Minnesota that is currently $11,975.00 for each of you that can be applied to anything that you own. This is in addition to other exemptions for some specific types of property. Transferring the asset back to them would be a bad idea, as it might be considered a fraudulent transfer.
Answered on Dec 06th, 2011 at 4:05 PM
Glen Edward Ashman
The worst move you can make is to give away any assets. At best it disqualifies you from filing, probably gets you and them sued, and probably loses the camper as they cannot exempt it. You question shows why people need to see lawyers and not guess at strategy. Whether you can keep it depends on the value, how it is now titled, what state you are in (and used to be in), and what other assets you have. An experienced lawyer may be able to figure out how to protect it, so do not file pro se.
Answered on Dec 06th, 2011 at 1:03 PM
Bankruptcy Chapter 11 Attorney serving Dacula, GA
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Chronister Law Firm, LLC
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There are exemptions for real and personal property when someone files for Bankruptcy. As long as the camper is not worth more than the allowed exemption, a trustee cannot sell the camper for the benefit of your unsecured creditors. Your 1986 camper, in all likelihood, will fall within the allowed exemptions so that you will be able to keep it. You should consult an experienced Bankruptcy attorney to go through the value of all of your assets so that appropriate exemption planning can be done on your behalf. Go see a solo practitioner or small Bankruptcy firm with a good reputation. Stay away from the larger Bankruptcy mill type firms that boast about the number of cases they have filed. You will ultimately get much better service and result if you stay away from these types of firms.
Answered on Dec 06th, 2011 at 12:31 PM
judith runyon
It depends on the value of it and all of your other assets. Talk to a bankruptcy attorney first.
Answered on Dec 06th, 2011 at 11:53 AM
Criminal Law Attorney serving Ellicott City, MD
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Law Office of William C. Wood, LLC
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The answer depends on what the camper is worth. In a Chapter 7 case, you are allowed to exempt a certain amount of property from the bankruptcy estate (meaning you would keep that property). Depending upon what your other property is worth, you may be able to keep the camper, but you would want to have it valued before making a decision. You would be required to identify any property that you have given away or transferred, so giving the camper back would not help.
Answered on Dec 06th, 2011 at 11:25 AM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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The bankruptcy laws usually let you exempt certain property. That means that you can keep it so long as it fits within some exemption law. If you have no equity in your residence, you may be able to use around $23,000 to protect the camper or any other property such as cash. Without more information, it is impossible to tell you whether the camper is exempt or not. Also, if the camper requires some registration with the Department of Motor Vehicles, transferring it to your in laws close to the date you file a bankruptcy petition may work to ensure that both you and your inlaws lose it, instead of saving it. The bottom line is that you need to consult an experienced and knowledgeable bankruptcy attorney as soon as possible before you transfer or do anything with the camper to figure out whehter it is exempt or what steps you need to take to preserve your property. Reputable attorneys will not pressure you into filing right away with them, but will instead advise you about your options and what to do to ensure that when you file, your case goes smoothly.
Answered on Dec 06th, 2011 at 11:24 AM
If you are living in the camper, then you could claim it as your homestead exemption. Otherwise, based on the limited information you have shared with me, you have a few good options and one bad option. Good option #1 - You could sell the camper for fair market value, and then use the money to pay for regular household expenses (including the cost of filing your bankruptcy). Good option #2 - You could file the bankruptcy, but list the camper as an asset. A 1986 camper (particularly a small one) may not be worth much. The trustee might decide to not mess with it. Or else if the trustee does decide to liquidate (sell) it, he or she may permit you or another family member to buy it back from the bankruptcy estate at a reasonable price. (if you do this, it would be smart to document all potential problems with it, so the value will be as low as possible... i.e. is there rust on the body, does it rust, does the toilet not flush right, does the A/C not work, etc.) Bad options - It is a bad idea to give the camper back, as giving away assets before a bankruptcy filing can be invalidated and the asset taken. It is also a bad idea (as in criminal) to conceal the fact that you own or owned the camper. Good luck to you. I of course encourage you to contact a bankruptcy lawyer in your area to discuss this in more detail.
Answered on Dec 06th, 2011 at 10:38 AM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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First, you cannot transfer it back. The Chapter 7 trustee would simple undo the transfer back and sell the camper any way. Second, you probably would be able to exempt it, depending on the other property you have. Under the law, you are entitled to keep a certain amount of property safe from the collection of creditors and the trustee. Depending on the value of a 1986 camper and the other exemptions you take, you would more than likely be able to exempt all or part of the camper. If you couldn't exempt it all, most trustees will offer to sell you back the remaining interest.
Answered on Dec 06th, 2011 at 10:35 AM
There is no Colorado exemption for campers, so it would become property of the bankruptcy estate. It's probably not worth much, so the trustee would likely sell it back to you cheap. If you give it back you have to disclose that and the trustee has the power to take it back. Not disclosing the camper or the transfer back to your in laws is a federal crime.
Answered on Dec 06th, 2011 at 10:35 AM
Criminal Defense Attorney serving Summit, NJ
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Stephen P. Dempsey Counselor at Law
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You should be able keep the camper plus other items depending on their value. We can exempt property under the bankruptcy code which allows you to keep certain assets within values provided by statute.
Answered on Dec 06th, 2011 at 10:34 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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A 1986 camper is not worth much so must likely you will be able to exempt it and keep it but that will depend on what else you own that you are going to keep. You have a certain amount of exemptions available to protect assets and if your exemptions allow you to keep everything then there is no problem keeping the camper.
Answered on Dec 06th, 2011 at 10:34 AM
Bankruptcy Decision Attorney serving San Diego, CA
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Law Office of Daniel G. Shay
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Look at the exemptions in your state. In CA you could protect it under 703 Wildcard Exemption.
Answered on Dec 06th, 2011 at 10:18 AM