Bankruptcy and Season Tickets

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    I Have Season Tickets —

    What Happens to Them in Bankruptcy?

    If you own season tickets to a professional sports team and are considering bankruptcy, you may be worried about whether you’ll lose the tickets, whether they are considered property, or whether the trustee can take or sell them.

    The answer depends on what kind of rights you actually have — and which chapter you file.

    This page explains how season tickets are treated in bankruptcy and what you should know before filing.

    First: Are Season Tickets “Property” in Bankruptcy?

    Sometimes yes — sometimes no.

    Bankruptcy looks at whether you have a property interest, not just a privilege.

    Season tickets can involve:

    • A license or contract right

    • A personal seat license (PSL)

    • A renewal right

    • A resale or transfer right

    Those details matter more than the tickets themselves.

    Two Very Different Situations

    1️⃣ Season Tickets With a Transferable Ownership Interest

    Some teams (especially NFL teams) treat season tickets as:

    • Transferable rights

    • Assets that can be sold or assigned

    • Rights that survive year to year

    In these cases:

    • The tickets (or the right to renew them) may be an asset

    • The trustee may evaluate whether they have resale value

    2️⃣ Season Tickets as a Revocable License

    Other teams treat season tickets as:

    • A revocable license

    • Non-transferable

    • Subject to team discretion

    In these cases:

    • The tickets often have little to no bankruptcy value

    • Trustees frequently abandon them

    Most season ticket situations fall somewhere between these two extremes.

    What About Personal Seat Licenses (PSLs)?

    PSLs Are Often Assets

    If you own a PSL:

    • It is usually considered property

    • It may have resale value

    • It must be disclosed

    • It may be subject to trustee review

    Whether it’s exempt or at risk depends on:

    • Value

    • Applicable exemptions

    • Chapter filed

    Chapter 7 Bankruptcy and Season Tickets

    In Chapter 7:

    • All assets must be disclosed

    • The trustee evaluates whether tickets or PSLs have value

    • If they have meaningful resale value, the trustee may:

      • Sell them

      • Demand turnover

      • Negotiate a buyout

    If value is minimal or restricted, the trustee may abandon them.

    Chapter 13 Bankruptcy and Season Tickets

    In Chapter 13:

    • You generally keep your assets

    • The trustee cannot sell your season tickets

    • Value may affect:

      • Plan payment

      • Best-interest-of-creditors test

    Chapter 13 is often used to protect non-essential but valuable assets.

    Can I Keep Paying for Season Tickets During Bankruptcy?

    This Is a Big Issue

    Trustees may question:

    • Whether season tickets are a reasonable expense

    • Whether payments reduce funds available to creditors

    In Chapter 13:

    • Paying for season tickets is often challenged

    • You may need to justify or pause payments

    In Chapter 7:

    • Ongoing payments shortly before filing can raise questions

    This is very district- and trustee-specific.

    Can the Team Cancel My Tickets Because of Bankruptcy?

    Usually:

    • Bankruptcy does not automatically cancel tickets

    • Teams may still enforce contract terms

    • Non-payment or breach can lead to cancellation

    Bankruptcy protects you from creditors — not from private contract rules.

    Common Myths About Season Tickets and Bankruptcy

    “They’re just tickets — they don’t matter.”
    Not always true.

    “If I don’t sell them, the trustee can’t take them.”
    False — value, not use, matters.

    “I can hide them because they’re personal.”
    Dangerous — nondisclosure causes serious problems.

    “Chapter 13 automatically lets me keep them.”
    You keep them, but payment scrutiny still exists.

    What You Should Do Before Filing

    ✔ Disclose the tickets and any PSLs
    ✔ Identify whether they are transferable
    ✔ Estimate realistic resale value
    ✔ Discuss payment issues with your attorney
    ✔ Do not transfer or sell them before advice

    Transferring tickets before filing can create fraudulent transfer issues.

    The Bottom Line

    Season tickets:

    • Must be disclosed

    • May or may not be valuable

    • Are treated differently depending on the team and contract

    • Can often be protected with proper planning

    Handled correctly, season tickets are usually manageable, not catastrophic.

    Talk to a Bankruptcy Attorney Before Filing

    If you own season tickets or a PSL, do not assume they’re irrelevant — but also don’t panic.

    Ginsburg Law Group helps clients:

    • Determine whether season tickets are assets

    • Protect PSLs and renewal rights

    • Choose Chapter 7 vs Chapter 13 strategically

    • Avoid trustee surprises

    👉 Contact us today for a free consultation if you have season tickets and are considering bankruptcy.

    Are Personal Seat Licenses (PSLs) Exempt in Bankruptcy?

    Usually, no — Personal Seat Licenses (PSLs) are not automatically exempt in bankruptcy.
    But that does not mean you will automatically lose them.

    How a PSL is treated depends on:

    • Its resale value

    • Whether it is transferable

    • The bankruptcy chapter you file

    • Available exemptions

    What Is a PSL in Bankruptcy Terms?

    A PSL is typically considered:

    • A contractual property right

    • Often transferable

    • Often has market value

    Because of this, trustees usually treat PSLs as assets, not personal privileges.

    Chapter 7 Bankruptcy and PSLs

    In Chapter 7:

    • PSLs must be disclosed

    • The trustee evaluates whether they have non-exempt value

    • If the PSL has significant resale value and no exemption applies, the trustee may:

      • Sell it

      • Demand turnover

      • Negotiate a buyout

    However:

    • Many PSLs have limited resale markets

    • Trustees often abandon PSLs with little net value after fees and restrictions

    Chapter 13 Bankruptcy and PSLs

    In Chapter 13:

    • You keep your PSL

    • The trustee cannot sell it

    • The PSL’s value may affect:

      • The “best interest of creditors” test

      • Plan payment amount

    Chapter 13 is often used specifically to protect PSLs and similar assets.

    Are There Any Exemptions That Can Apply?

    Possibly — but not PSL-specific ones.

    A PSL might be partially protected by:

    • Wildcard exemptions

    • Personal property exemptions

    This depends on:

    • The exemption scheme used

    • Other assets claimed

    This is highly fact-specific.

    What NOT to Do With a PSL Before Filing

    ❌ Do not transfer it
    ❌ Do not sell it without advice
    ❌ Do not hide it
    ❌ Do not assume “it’s just tickets”

    Transfers can create fraudulent transfer problems.

    Bottom Line

    ✔ PSLs are usually assets
    ✔ They are not automatically exempt
    ✔ Many can still be protected with planning
    ✔ Chapter choice matters

    Talk to a Bankruptcy Attorney Before Filing

    If you own a PSL, do not guess how it will be treated.

    Ginsburg Law Group helps clients:

    • Evaluate PSL risk

    • Use exemptions strategically

    • Choose Chapter 7 vs Chapter 13

    • Protect lifestyle assets legally

    👉 Contact us today for a free consultation if you own a PSL and are considering bankruptcy.

    Can I Keep Paying for Entertainment in Chapter 13?

    Sometimes — but it is one of the most closely scrutinized areas of a Chapter 13 case.

    Chapter 13 requires you to commit your disposable income to creditors. Trustees expect sacrifices — but not total misery.

    The question is not “Can I have entertainment?”
    It’s “Is the expense reasonable and justified?”

    What Counts as “Entertainment”?

    Entertainment can include:

    • Streaming services

    • Cable

    • Gym memberships

    • Sports tickets

    • Concerts

    • Vacations

    • Hobbies

    Some are more defensible than others.

    What Trustees Usually Allow

    ✔ Modest streaming services
    ✔ Basic internet and cable
    ✔ Low-cost hobbies
    ✔ Family-oriented activities

    Especially if:

    • The amounts are small

    • They are consistent

    • They don’t undermine plan feasibility

    What Trustees Commonly Challenge

    🚩 Season tickets
    🚩 Expensive sporting events
    🚩 Frequent concerts or travel
    🚩 Luxury gym memberships
    🚩 High discretionary spending

    These expenses may be:

    • Disallowed

    • Used to increase plan payments

    • Required to be paused

    District Reality (Important)

    Trustee tolerance varies by:

    • District (EDPA, MDPA, WDPA)

    • Trustee philosophy

    • Case facts

    There is no universal rule.

    Strategies That Sometimes Work

    ✔ Showing the expense is prepaid
    ✔ Showing it’s limited or temporary
    ✔ Showing mental health or family value
    ✔ Adjusting other expenses downward

    Silence or defiance does not work — explanation sometimes does.

    What You Should NOT Do

    ❌ Hide entertainment expenses
    ❌ Continue luxury spending while claiming hardship
    ❌ Assume “they won’t notice”

    Trustees review bank statements.

    Bottom Line

    ✔ Some entertainment is allowed
    ✔ Luxury is not protected
    ✔ Reasonableness matters more than labels
    ✔ Planning avoids objections

    Talk to Your Attorney Before Filing Chapter 13

    If entertainment spending matters to you, discuss it upfront.

    Ginsburg Law Group helps clients:

    • Build realistic Chapter 13 budgets

    • Anticipate trustee objections

    • Protect quality of life where possible

    • Avoid plan failure

    👉 Contact us today if you’re worried about spending rules in Chapter 13.

    Luxury Expenses vs Reasonable Expenses in Bankruptcy

    Where Is the Line in Bankruptcy?

    Bankruptcy does not require you to live without dignity — but it does require financial honesty and restraint.

    The law draws a line between:

    • Reasonable, necessary expenses

    • Luxury or discretionary spending

    Where that line falls depends on context.

    Reasonable Expenses (Usually Allowed)

    ✔ Housing
    ✔ Utilities
    ✔ Food
    ✔ Transportation
    ✔ Insurance
    ✔ Medical care
    ✔ Child-related expenses
    ✔ Modest communication and internet
    ✔ Basic recreation

    These are considered part of normal life.

    Luxury Expenses (Often Challenged)

    🚩 High-end travel
    🚩 Expensive season tickets
    🚩 Premium entertainment
    🚩 Luxury vehicles
    🚩 Designer shopping
    🚩 Gambling
    🚩 Frequent large cash withdrawals

    These raise good-faith concerns.

    It’s Not Just the Category — It’s the Pattern

    Trustees look at:

    • Frequency

    • Amount

    • Timing

    • Overall lifestyle

    • Whether creditors are being shortchanged

    A single modest expense is different from ongoing luxury behavior.

    Chapter 7 vs Chapter 13 Differences

    Chapter 7

    • Focus on honesty and intent

    • Luxury charges shortly before filing can create fraud issues

    Chapter 13

    • Focus on affordability and fairness

    • Ongoing luxury spending undermines plan feasibility

    The Most Dangerous Mistake

    ❌ Assuming “luxury” only means yachts and mansions

    Small, repeated discretionary spending adds up — and gets noticed.

    The Safest Rule

    If an expense would offend a judge reading it on paper, expect questions.

    Bottom Line

    ✔ Bankruptcy allows reasonable living
    ✔ It does not protect luxury lifestyles
    ✔ Context and honesty matter
    ✔ Planning beats justification after the fact

    Talk to a Bankruptcy Attorney Before Filing

    Expense issues are one of the most common reasons trustees object or plans fail.

    Ginsburg Law Group helps clients:

    • Classify expenses correctly

    • Avoid fraud allegations

    • Build defensible budgets

    • File with confidence

    👉 Contact us today if you’re unsure how your spending will be viewed in bankruptcy.

    📞 Call us today for a free, confidential bankruptcy consultation – 855-978-6564 or email us at bankruptcy@ginsburglawgroup.com.

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    BANKRUPTCY TEAM

    AMY GINSBURG – aginsburg@ginsburglawgroup.com

    GRACIE KLEIN – gklein@ginsburglawgroup.com

    NICOLE LOMBARDI – nlombardi@ginsburglawgroup.com