If you are a boat or aircraft enthusiast, and you need to file for bankruptcy, you may be worried. When you are filing for a Chapter 7 bankruptcy you are agreeing to liquidation. This can result in losing your hobby item if you aren’t careful. Like any other asset, if you want to protect your plane or boat you need to disclose the item to the bankruptcy court. That item is subject to acquisition by the trustee if it isn’t permitted under the exemptions statutes. Sometimes items that you want to exempt from liquidation are allowed depending on the nature of the item and how it affects your case. In all states, the government will allow a $1,150.00 catch-all exemption which can apply to any personal property owned by the debtor. This provision allows you to keep precious heirlooms or jewelry that you wouldn’t want to liquidate. However, this amount of money is probably not enough to cover your boat or plane.
Another provision in the federal law code permits that about $10,800 in unused home equity can be protected and exempt from liquidation. Also, you may be able to exempt about $2,000 of equipment if the items are used for business. In order to protect these items, the debtor must be able to prove why the properties are necessary for his or her trade or company. In some states, you can also exempt up to $7,500 or so in one car or vehicle that you choose for personal transportation. This way you can still interview for jobs and look for employment. If you are over 60 or have a disability, then you may be able to exempt up to $15,000. Only the amount of money on the vehicle matters, not the make or model. Using these exemptions, and working with your bankruptcy lawyer, you may be able to protect some of your dearest assets from liquidation.