I live in Ohio, and I am planning on filing chapter 7. My boat is worth about $21,000, but I owe $26,000. The boat loan is in both mine an my ex wifes name as is the title. I am the only one filing not her. So I was curious given my unique situation if I woul be able to keep it.
If there is no equity in property, the only party that will take it from you is the lender that financed the purchase of the boat. And the lender will only want the boat back if you aren't paying for it. Obviously, you don't get to "have your cake & eat it too," so to keep the boat, keep making the payments.
Hope this perspective helps!
If surrendering the boat will leave you with significant excess income to fund a Chapter 13 plan, you may face good faith arguments for a Chapter 7 case. It will be difficult to keep it in a Chapter 13 case.
See a local lawyer now. So much more is needed to answer this question.
Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.
Your issue will be whether the court will let you keep making payments on the boat loan while not paying your creditors. Unless the boat is necessary for your livelihood, that would seem unlikely to me, but you should ask a local bankruptcy lawyer.
It's true that keeping the boat is a tough sell in Cincinnati, but it's not necessarily impossible. We really would need to do some work on your budget (trimming the fat, so to speak) and perhaps show that you are making sacrifices elsewhere. As a prior poster mentioned, the issue is filing in good faith. If you'd like to discuss the issue further, I'd be happy to speak with you.
Years licensed, work experience, education
Peer endorsements, associations, awards
Publications, speaking engagements