Keeping a recreational boat in Chapter 7

[Tuna10]

What is the name of your state?What is the name of your state?CT

We have a boat worth about $9k with an existing loan of anout $11k. Can we reaffirm the loan to this boat or will we lose it during a Chapter 7?

[bigun]

Since you've negative equity, I'm sure you'll be able to keep the boat. I wouldn't reaffirm unless, the district you're filing in requires a formal agrement.

[I AM ALWAYS LIABLE]

Originally Posted by bigun

Since you've negative equity, I'm sure you'll be able to keep the boat. I wouldn't reaffirm unless, the district you're filing in requires a formal agrement.

My response:

Sometimes I wonder if you know what you're talking about. And, with your response, above, I highly suspect all other responses you give to people are nearly as worthless.

IAAL

[toughluck73]

To the OP. Just my two cents here but why don’t you just give it up, and I must say I don’t know your financial situation. I mean you owe more than it’s worth. You could later look for another $9k boat and owe only $9k for it, instead of $11k. I realize that means you might be without a boat for a while but might as well discharge all your debt and start fresh.

[bigun]

I'd agree with Toughluck. Boats depreciate rapidly and when you factor in operating expenses, I'd let it go. I'd be surprised if a dealer could sell it for $9K.
But, I've seen more than a few people keep small boats and jet skis in a Chapter 7 because the equity was small enough to fit into the state wildcard exemption or, more was owed than the boat was worth. Forcing them to surrender the boat will only create one more unsecured debt. It would be different if the boat was more expensive and clearly a luxury craft. I think they've a reasonable shot at keeping it.