Many people who file for bankruptcy have “toys” that they use for recreational purposes. These can include motorcycles, boats, snowmobiles, ATVs, motorhomes, etc. Bankruptcy is a powerful tool that enables many people to become free from their crushing debt. Generally speaking, bankruptcy law is designed to allow a person who files a bankruptcy case (aka the “debtor”) to keep a modest amount of property that is necessary to prevent the debtor becoming completely impoverished, and allows them to “get back on their feet” after their debt is wiped out. The debtor’s homestead (primary place of residence), a modest vehicle, and basic personal property (i.e. clothes, personal effects, and basic furniture) are generally “exempt,” meaning legally protected from being taken or used to satisfy debts. Whether debtors are allowed to keep their recreational toys, which are often not exempt, nor considered necessary for the debtor to possess, depends upon the circumstances and type of bankruptcy that is filed.
