Can you keep an RV when filing Chapter 7?

A chapter 7 bankruptcy typically results in the liquidation of your personal assets in exchange for the wiping-out of your debts. However, in every case, the person filing is allowed certain exemptions, which keep certain types of property, up to particular value amounts, safe from liquidation. The specific values of each exemption type are based on state law and will thus depend on the state in which you live and in which you're filing. 

An RV, or recreational vehicle, is not considered as essential as, for example, a house, so the odds of keeping it are less certain. If you own the RV and are not making payments on it, you will typically not be allowed to keep it unless you can find an exemption law that applies to it. Depending on its value and depending on the other types of property you're choosing to hold exempt, you might be able to include it, for example, under a “personal property” exemption or a “wild card” exemption. However, if you have several other items that you're already keeping under those exemptions, it could be that keeping the RV would put you over the maximum value. In some states, an RV may not even qualify for these exemptions: many states put restrictions on what types of items can qualify for personal property, wild card and other types of exemptions.

If you're making payments on the RV, it may be possible for you to reaffirm the debt. In other words, you may be able to request successfully to keep the financial arrangement you have in place and have it be unaffected by the bankruptcy, allowing you to keep the vehicle. This will largely depend on whether the vehicle's lender is willing to let you do so.

It may also be possible in a Chapter 7 for you to buy back the RV from the trustee. However, doing so can result in a fairly large financial loss for you, since it will be sold back to you at a different rate and will also subsequently cut into the amount of funds available to pay out to your creditors.

You should consider speaking with your lawyer to find out what options you may have based on your personal circumstances and the laws where you live.