Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Bankruptcy And Your Horse

Most people wonder if they can keep their house if they declare bankruptcy - but in these days of economic hardship, in which the wealthy, too, have been affected, some are asking, can I keep my horse? An article at www.TheHorse.com explores the options for horse owners in financial trouble and runs down the difference between Chapter 7 and Chapter 13 options in regards to the stable.

In a Chapter 7 bankruptcy filing, the horse - and perhaps its accessories - would probably have to go. Although a debtor will be able to keep some property that is considered exempt, horses are considered non-exempt personal property and would most likely be sold to pay off creditors.

In a Chapter 13 bankruptcy, debtors would be more likely to keep their horses. In this type of filing, you would create a payment plan that is approved by the court and decide whether or not to keep your horse for yourself. Of course, if you are struggling to improve your credit and simplify your life, keeping an expensive animal such as a horse may be a financial burden whether or not you are allowed by law to keep it.