Assuming you own the recreational vehicle free and clear or have substantial equity in it, the answer as to whether you will be able to keep it depends upon whether you file a chapter 7 or a chapter 13 bankruptcy.  Recreational vehicles such as quads, sandrails, dune buggies are not considered necessary to you establishing a fresh start.   Therefore, they are not protected under the bankruptcy exemption statutes.  Consequently, they are subject to being taken in a bankruptcy proceeding if you do not plan for your bankruptcy properly.

Chapter 7 Bankruptcy Options

In a chapter 7 proceeding, you are generally not allowed to keep a recreational vehicle if you own it free and clear.  You will either have to surrender the item to  the trustee, or buy the item back from the trustee.  If you surrender the item to the trustee, the trustee will sell it and after withholding the administrative expenses of the sale, will pay the remaining proceeds to your creditors.  One option you can pursue is to purchase back from the trustee, typically at a reduced price.  The trustee will then take your purchase proceeds, less his administrative expenses and pay the creditors.

For example, if you had a quad that was worth $2500, the trustee could sell the quad at an auction and perhaps get $2000 for it.  After subtracting his administrative expenses for his efforts as well as the cost of the sale, the trustee would be able to pay $1800 to the creditors.  Or, you may offer to purchase the quad back from the trustee for $1500 and keep the quad.  The trustee would then pay the $1500 less his administrative expenses to your creditors.

Pre Bankruptcy Planning For Non Exempt Assets

A better way to address the issue with your recreational vehicle would be perhaps to sell it before filing bankruptcy and place the cash proceeds into an exempt asset such as the equity in your home or your primary vehicle.  In this scenario you get to keep the cash, but lose the recreational vehicle.  You should get proper legal advice from your lawyer prior to pursuing this option and other pre bankruptcy planning strategies.

Chapter 13 Bankruptcy Options

In a chapter 13 bankruptcy, you would have to pay the trustee back the value of the asset, over the life of the Chapter 13 plan.  A Chapter 13 plan typically lasts 3 to 5 years.  For example, if you have a quad that is worth worth $2,500.00, you would pay the trustee roughly $45 per month for five years to keep your quad.  Again, this assumes you own the quad free and clear.

Under either chapter 7 or chapter 13 Bankruptcy, if you owe money on the quad, you simply have to keep making the payment to keep it.  If you have a substantial amount of equity in the quad, and still owe money on it, you may have to pay the trustee an amount equal to your equity in order to keep the quad, or the trustee may take it and sell it if he believes there is enough equity in it to warrant the sale.  In a chapter 7, if you were going to pay the trustee for the equity, you would have to do it all in one lump sum.  Whereas in a chapter 13, you can pay the equity in time, in monthly payments, over the life of the plan which is three to five years.