If you’re an ATV owner considering filing for Chapter 7 bankruptcy in Indiana, you might wonder whether you can keep your vehicle. The good news is that in most cases, an ATV is considered a protected asset in bankruptcy and can be kept by the debtor when filing bankruptcy.
Chapter 7 bankruptcy is considered a financial fresh start. Debtors are allowed to keep certain items in bankruptcy. In Indiana, debtors are allowed to claim exemptions that protect certain types of property from being sold by the bankruptcy trustee.
Under Indiana law, the exemption for motor vehicles (tangible property) includes ATVs. This means that as long as the value of your ATV falls within Indiana’s exemption limit, you should be able to keep it after filing for Chapter 7 bankruptcy. That limit is currently around $12,100 per person. It’s worth noting that the exemption limit for vehicles in Indiana varies depending on the debtor’s circumstances. For example, if you’re a married couple filing jointly, you may be able to claim exemptions of up to about $24,200 right now.
Additionally, if the equity in your ATV exceeds the exemption limit, you may still be able to keep it by negotiating with the bankruptcy trustee. In some cases, the trustee may allow you to buy back the ATV by paying the difference between its value and the exemption limit. Remember, any amount of loan remaining on the ATV also decreases the equity counted.
While there are some exceptions, keeping your ATV when filing for Chapter 7 bankruptcy in Indiana is generally possible. It’s important to work with an experienced bankruptcy attorney who can help you navigate the process and protect your rights.
At Bymaster Bankruptcy Law Offices, our team has helped countless Indiana residents achieve debt relief and regain control of their financial future. Contact us today to learn more about your bankruptcy options and how we can help.