Keeping "Luxury Items" in a Chapter 13 Bankruptcy

This week I have been working on a chapter 13 case in which my clients would like to keep and pay for their two four-wheelers.  The chapter 13 trustee was initially opposed to this plan, claiming that four wheelers are considered recreational luxuries that a person in bankruptcy should not be allowed to keep.  The trustee argued that money the debtors would pay toward keeping the four wheelers should instead be paid to unsecured debts like credit cards and medical bills, and my clients should have to give up their four wheelers.

My clients explained that they do not use the four wheelers primarily for recreation.  Instead, one of the four wheelers is affixed with a snow plow to clear the driveway because both clients are medically unable to shovel snow.  My clients further explained that they use both the four wheelers to help maintain their in-laws' nearby ranch and the livestock on the ranch.  In return, the in-laws give my clients a freezer full of meet every six months, helping to save on expensive grocery bills.

I told the trustee about these extenuating circumstances, and we reached a compromise.  If my clients agreed to pay another $75 per month toward their unsecured debts in the chapter 13 repayment plan, the trustee would not try to make them give up their four wheelers.  Done!  The clients are thrilled with the deal.

The point is, in bankruptcy as in most other parts of life, everything is negotiable.