QUESTION

What will happen if we stop making payments on our RV that we own?

Asked on Jan 14th, 2011 on Child Custody - New Jersey
More details to this question:
Several years back, my husband purchased an RV in his name. My name is not on the title. As we get up there in age, almost in our 70s, we feel as though we can no longer afford it. What will happen if we stop making payments on the RV? Will we be taken to court?
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Answered on Jan 16th, 2011 at 10:58 AM
I could provide more thorough information if you would call me directly. Yes, you could eventually be taken to Court, but it would take a while for the situation to get to that point, even after the vehicle was repossessed. In the short term, ceasing your payments would result in collections activity and the eventual repossession of the R.V. It would be better to sell it, rather than to start that long, unpleasant process. Do you have any equity in the vehicle? If there is no equity in the vehicle, and you need the money to survive, then perhaps a lawsuit against you would not be a financial boon to the creditor. Also, never participate with them or agree to anything. It is not uncommon for a vehicle creditor to repossess a car or vehicle and still try to enforce payment of the entire contractual amount! Obviously, you will not cooperate with any attempt at that type underhanded fraud. You could attempt to negotiate with the bank, but do not agree to pay more money if you are also losing the vehicle. I am often very disturbed by predatory financial practices upon the elderly. As I said, call an Attorney (e.g., me).

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Answered on Jan 15th, 2011 at 6:28 PM
The RV will likely be repossessed and it is possible that you might be taken to court if you owe more on the lien than what is received at a sale. Your income might be protected though depending on what the source of your income is.

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Answered on Jan 14th, 2011 at 4:13 PM
You can be taken to court but it may be possible to avoid that. The most common scenario when borrower stops paying is that the vehicle is repossessed, then sold at an auction for less than the contract price thus creating a deficiency, and then the creditor strongly considers taking the borrower to court. You might try calling the lender, explaining the situation, and offering to surrender the vehicle to save the lender the delays and expenses in repossessing it in exchange for the lender agreeing not to sue you for the deficiency. Or perhaps in exchange for your cooperation the lender agrees to accept less than the full amount of the deficiency as payment in full. Another option (especially if the lender is uncooperative) would be to see if you qualify for bankruptcy and then file if and when you get sued for a deficiency since a chapter 7 bankruptcy would usually excuse you from having to pay back any of the deficiency. Good luck, and I hope the lender is reasonable and that this is helpful to you.

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