Exempt Property (reside in IN.)

[mailman16]

(dorenephilpot, this should be right up your alley as I am an IN resident.) I am considering ch.7 bankruptcy and have very little in the way of personal assests. However, I do have a piece of musical equipment I purchased 2 yrs. ago for $1500.00 with a MasterCard that I plan to liquidate in the bankruptcy. Can the credit card company repossess that piece of equipment? I have made money in the past as a professional musician (although it is not my primary source of income) but not with this particular piece of equipment, but I do have money making opportunities lined up in the next 60 days with this piece of equipment. Can I claim this equipment as a work tool since it is used to make money? If all else fails, can I give it to a friend? (It is a guitar amplifier in case it's relevant.)

Thanks alot for your advice!!

 

[dorenephilpot]

The personal property exemption in Indiana is $4,000 for a single person and $8,000 for a married couple. As long as your musical item, plus all the other personal property you own, falls under that exemption level, the court won't take it away and liquidate it for your creditors.

On the credit card purchase, the original creditor (store) was paid immediately for the item by the credit card folks, so that transaction is done, and the store cannot come after you for that item.

The credit card company MIGHT be able to, but there are a couple of reasons I doubt it would. First of all, musical equipment, like computer equipment, loses about half its value as soon as you "drive it off the lot," so it's probably not worth them pursuing, purely in terms of financial gain. Second, unless they feel you bought it, all along knowing you were going to file, they probably won't be motivated enough about it to ask for it back. Third, more than 90 days have passed, so it doesn't appear that you were trying to fleece the creditor.

I can't gurantee anything, but if I were a betting woman, I'd say that that piece of equipment won't be an issue if you file for BK.

Giving it to a friend is not advised because then you are transferring assets, trying to shield them from creditors. This kind of thing, if the court learns of it, likely would get your bankruptcy tossed out and possibly get you in trouble w/federal authorities. I wouldn't risk it!

Hope this helps.