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    Musical instruments for professionals

    Hi - Newbie here,

    To what extent are musical instruments and equipment exempt if you are a part time professional musician (with a track record of playing music for many years professionally to back up that statement)?

    Can you keep different guitars for different sounds or do they let you just keep one guitar? How much of this overlaps "tools of the trade"?

    Thinking about Chap. 7 after a year's unemployment (in music and otherwise) got me into a big hole ....

    Thanks,
    Dave

    #2
    Bring those to pawn/music shops for written estimate/appraisal. Give papers to trustee as secured statement/proofs.

    Comment


      #3
      Proofs of what? Ownership & value?
      What I want to know is can I keep multiple guitars in a Chapter 7. If I can't then I would not file a Chapter 7, or I'd go ahead and give my child his inheritance early.
      Thanks,
      Dave

      Comment


        #4
        You need to know the values of such items because it is possible that these items would be an asset for the Trustee to sell and then distribute the monies to your creditors. This is usually rare with musical instruments, unless it's a Baby Grand piano. I bought a new Drumset about 4.5 years ago and 2 years before filing, I bought a Bass Guitar and amp. The Trustee asked if he could get $1000 for the drums, I said no and he left it alone. Although, I paid $1200 for the kit brand new, so there was not enough value for the trouble to seize.

        With regards to your child's early inheritance, it is not wise to transfer property before filing BK......so many numbers these days, I can't remember how many days before filing you can not transfer assets.
        Bankruptcy History:
        Chapter 7 filed - 10/12/2005 - Asset
        Discharged - 02/16/2006
        Case Closed - 11/08/2007

        A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

        All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

        Comment


          #5
          Just venting.... there's only one particularly expensive guitar. Of course, expensive is a relative term, but from the question the trustee asked you most of the guitars would be under $1000 if I had to try to sell them. They are different sizes, shapes & sounds - each unique when recording, so it'd be detrimental to future work to have to sell any.

          Maybe Chap 7 isn't for me.

          Do most non-homeowners just end up with the shirts on their backs and little in the way of any creature comforts?

          Comment


            #6
            Originally posted by c6th View Post

            Do most non-homeowners just end up with the shirts on their backs and little in the way of any creature comforts?
            We kept everything. But, buy the time we filed, we didn't have anything but normal household goods anyway. Savings were gone. Retirement was gone. We'd spent it all trying to avoid BK.

            If you are a professional musician,.......... Possibly some of your instruments would be covered under "Tools of the Trade"??

            Do get new values. Take your things to a Pawn shop or a Music shop that sells "used" instruments and sound equipment. Have them give you values based on what the shops would pay, Cash on the Spot, for your wares. That's the values I'd use for BK purposes.

            The Trustee isn't gonna wait around to find "the right" buyer. They quick sale all items recovered. Generally in an Auction setting held 1x to 2x per month.
            Filed Ch 7 - 09/06
            Discharged - 12/2006
            Officially Declared No Asset - 03/2007
            Closed - 04/2007

            I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

            Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

            Comment


              #7
              If you don't mind me asking, did the trustee make you sell personal items? I know an appraisal from a pawn shop would be pretty bad. I wonder at what point they let you keep something rather than go through the trouble & expense of selling it?
              Thanks

              Comment


                #8
                We did not loose a thing.

                Unless you're rich and have really nice things. Expensive works of art. Imported Italian leather furniture. One of a kind collectibles. That type of thing. Unless the Trustee is a real butt, they won't be interested.

                There was one person who posted here a long, long time ago that their Trustee went after garden tools, hose, that kind of thing. Really, the Trustee was wanting money. As in $1K is what the Trustee offered to settle for.

                Here's a link to the thread:

                http://www.bkforum.com/showthread.ph...ht=garden+hose

                Pretty much, I think they got caught in being too detailed with their descriptions. AND, if I remember correctly, they used Federal Exemptions which did not allow for covering the items the Trustee went after.

                Another person posted their Trustee asked for some items to be turned over as well.

                http://www.bkforum.com/showthread.ph...ght=410&page=2

                Post #20 on Page 2 of the thread. By Scooter.

                Other than that, there've been a couple of "Settlements" with the Trustee and that's it.

                Here's a link to one:

                http://www.bkforum.com/showthread.ph...light=nc7prose

                In nearly 2 years I've been a member of this Forum,.......... With all the people that come and go here,.......... There's not really many cases where people have had run ins with the Trustee.

                Bear in mind,............

                Trustees do not sell things themselves.

                They have relationships with area professionals to sell seized items. Real Estate Brokers to sell houses. Auctioneers to sell household goods, autos, and such. Our attny told us where and what day of the month the local BK Auction is held here.

                Trustees have costs to sell. Houses, on average, cost Trustees about 10% to sell and don't move quickly. Trustees pay other professionals fees to sell items as well.

                It's quicker and easier for the Trustee to simply settle with you. And you can see in NC7's case, the Trustee settled for about half the actual value.

                Cheesy or not, pawn shop valuations do work. And don't get so detailed in your descriptions. Like the one post said,............ Instead of "antique chinese desk", say "old wooden desk". Instead of listing out Martin this or Gibson that, just say "assorted acoustic and electric guitars" and put a bulk $$$ value.
                Filed Ch 7 - 09/06
                Discharged - 12/2006
                Officially Declared No Asset - 03/2007
                Closed - 04/2007

                I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                Comment

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