slip and fall

If the RV is actually used as the primary home, it may be exempt in the same way that a house or mobile home would be. If it is actually used as the primary vehicle, it may qualify for the automotive exemption.

Learning Whether Keeping an RV Is Allowed When Filing for Chapter 7

When an individual or couple files for chapter 7 bankruptcy, they must liquidate most of any assets they have left. The money goes to pay their creditors as much as possible, and the rest of the debt is written off. Chapter 7 does not force people to sell their homes or primary vehicle, unless the vehicle is worth a large amount of money.

Learning Which Possessions Can Be Kept

By the time people file for bankruptcy protection, they typically have used up most of their savings and sold off assets. Unfortunately, they may be required to give up some possessions they have really hoped to keep. They will want to learn the exemptions in chapter 7 bankruptcy as to which possessions must be relinquished. Questions can be answered by a bankruptcy attorney before any filing is done. It's best to file the papers with the assistance of a lawyer to make sure everything is in proper order.

Possible Exemptions for the RV

An individual or couple might wonder whether they can keep an RV, for example. Partially this depends on what the camper is worth. If it is not particularly valuable, it may be classified under a wildcard exemption. In some states, however, the wildcard maximum is so low that only a very old camper would qualify.

If the RV is actually used as the primary home, it may be exempt in the same way that a house or mobile home would be. If it is actually used as the primary vehicle, it may qualify for the automotive exemption.

It may be possible to move from an apartment into the RV and turn it into the primary home. A bankruptcy lawyer can explain the legalities of this. There may be a certain time frame for which the RV must be the actual place of residence for it to qualify as a homestead exemption. This option actually can make sense if the people own the camper outright and all they would need is a place to park it. They could stop paying apartment rent until they get back on their feet.

Starting Over

Since filing for chapter 7 is intended to help U.S. citizens get a fresh start, it might be advisable simply to let the RV go. Without the burden over overwhelming debt, the individual or couple has a chance to begin building up savings and repairing their credit score. Eventually they'll be able to buy another RV.