Can Your Golf Hobby Affect Bankruptcy Claims?
From tee time to trustee time! This podcast focuses on the issues of bankruptcy and golf. Is it possible the bankruptcy trustee objects to your Chapter 7 or Chapter 13 bankruptcy because of your passion for the game or other hobby? Listen to this podcast to learn more.
Updated on March 16, 2025.
So you’re probably wondering if I am off to play around golf now. It’s wishful thinking on my end since the golf course is closed. They’re aerating the greens. For those of you who love golf, you know what I’m talking about. But there is some method to my madness.
We witnessed the heartbreaking loss at the U.S. Open, where Rory McIlroy, who hasn’t won a major in ten years, missed two putts that may be combined were six feet. The last putt was 2 1/2 feet. So Bryson Dechambreau is the U.S. Open champion. Of course, he’s from Liv Golf, and there’s the controversy surrounding that.
But I’m here to talk about golf and bankruptcy. Coincidentally, today, I published a video on my YouTube Channel about Rudy Giuliani and the issues he’s having with his Chapter 11 bankruptcy case, where a trustee will be appointed to oversee his finances.
The first time I wrote about Rudy Giuliani, I discussed the issues of his golf membership and how bankruptcy could affect it. I believe he owed forty to fifty thousand in club dues at the time. Coincidentally, after I wrote that article, a reader emailed me and asked me the same question, so I wrote a separate blog post on that issue.
Now, to get into the weeds. What does bankruptcy have to do with golf? In reality, nothing. That’s why it would affect you. Golf is not essential. It is to me; it’s therapeutic, but I’m sure that argument wouldn’t fly in court.
But realistically, if you’re filing for bankruptcy and playing golf, whether it’s a membership or you play once a week, it will be a problem.
Since it’s not essential, although those of us addicted to the sport believe it is, it’s not a necessary expense. The bankruptcy trustee could object since that expense could be used to pay down your debt.
So, if you file for Chapter 7, the trustee will object and argue that Chapter 13 bankruptcy should be filed. If you’ve filed Chapter 13, the trustee will likely object. A golf membership is an unsecured debt, and without the expense of golf, there is more money for unsecured creditors.
Bankruptcy Exemptions Whether Golf or Other Hobbies
Another issue is that maybe you don’t play golf regularly and forgot to list your golf clubs on Official Bankruptcy Form 106A/B Schedule A/B: Property (individuals).
The bankruptcy trustee notices a deduction on your bank statements for a round of golf. The trustee will ask if you play golf. The follow-up question is if you own golf clubs, and if so, why wasn’t it listed in the schedules?
Golf clubs can be expensive. Mine were custom-fitted at the PGA store. Living close to Saint Augustine, I’ve gone to The Players Championship a few times and played the course.
This can be an expensive hobby. A new driver could cost $500. Easily one thousand plus for a new set of golf clubs. Plus the bag, fairway woods, etc. Since golf clubs are personal property, it could result in being over-exempt.
Of course, once the bankruptcy trustee confirms you forgot to list your golf clubs, I guarantee you the following question from the bankruptcy trustee is: “What else did you forget to list?”
That could lead to a 2004 examination, similar to a deposition. At the 2004 examination, a bankruptcy trustee will dig deep into your finances. So you have to be careful.
So, going back to my original blog post on whether golf and bankruptcy mix, the answer is no. That applies to both Chapter 7 or Chapter 13 bankruptcy. So whether you have a single-digit handicap orare a weekend hacker, let your bankruptcy lawyer know.
So, I’ll see you in the fairways, hopefully, and as my good friend Tom used to say, “Keep it in the short grass.”
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Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon Books. To access my YouTube channel, click this link. Archives can be found via this link.
Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.
This podcast transcript was edited for clarity.