What will happen if we stop making payments on our RV that we own? 11 Answers as of January 18, 2011

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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Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
The lender has a security interest in the RV, and will doubtless repossess it. After the repossession the lender will sell it as a used vehicle to recoup whatever the balance on the loan is. If the lender receives less than what is owed, then the lender has the right to seek to recover the deficiency from you, using the usual collection methods, up to suing you for the deficiency. At that point you may wish to consider filing bankruptcy to discharge the obligation to the lender.
Answer Applies to: California
Replied: 1/18/2011
Law Office of Curry & Westgate
Law Office of Curry & Westgate | Patrick Curry
Your husband will be liable and you may be as well if he used your information to obtain the loan.
Answer Applies to: California
Replied: 1/17/2011
Law Office of Tim W. Avery
Law Office of Tim W. Avery | Tim W. Avery
The finance company will repossesed the RV if you default on the loan and do not cure the default. They can then sue you for the balance owed plus attorney fees and costs. It will also have a negative impact on your credit score. Best thing to do is to sell the RV.
Answer Applies to: Texas
Replied: 1/16/2011
Law Office of Joseph A. Katz
Law Office of Joseph A. Katz | Joseph A. Katz
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).
Answer Applies to: California
Replied: 1/16/2011
Diana K. Zilko, Attorney at Law
Diana K. Zilko, Attorney at Law | Diana K. Zilko
Likely the lender will simply seek to repossess the RV. They may also seek to recover any additional amount owed beyond the current market value.
Answer Applies to: California
Replied: 1/16/2011
    Cody and Gonillo, LLP
    Cody and Gonillo, LLP | Christine Gonilla
    It will be repossessed and if it is sold and the lender gets less than what you owe on the loan you will owe the lender the difference (called a "deficiency"). Perhaps you should try selling it yourselves, hopefully for more than what you owe. If you have any other questions please call. Good luck.
    Answer Applies to: Connecticut
    Replied: 1/16/2011
    Warner Center Law Offices of Donald F. Conviser
    Warner Center Law Offices of Donald F. Conviser | Donald F. Conviser
    If you stop making payments on your RV, the lender will likely repossess the RV, sell it for the best price it can get, and sue you for the difference between what it received in the sale and what you owe on the RV. If the lender fails to attempt to "mitigate damages" by failing to try to sell your RV after repossessing it, you would have a partial defense, but you would have to retain an attorney to defend you against the lawsuit if you want to present any defense, at your cost; if you fail to present any defense, you could end up with a Judgment against you for the balance due on the RV.
    Answer Applies to: California
    Replied: 1/15/2011
    DiManna Law Office, LLC.
    DiManna Law Office, LLC. | Dawn DiManna
    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.
    Answer Applies to: New Hampshire
    Replied: 1/15/2011
    Stuart Jon Bierman  Attorney at Law
    Stuart Jon Bierman Attorney at Law | Stuart Jon Bierman
    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.
    Answer Applies to: New Jersey
    Replied: 1/14/2011
    Lori C. Obenauf LLC
    Lori C. Obenauf LLC | Lori C. Obenauf
    If you do nothing, the creditor will most likely repossess the RV, sell it, and sue your husband for the deficiency balance actions which will severely impact your husband's credit score. You may want to consider a consultation with a bankruptcy lawyer to prevent a repossession and see what options you may have to protect your assets and eliminate or reduce your debt.
    Answer Applies to: Georgia
    Replied: 1/14/2011
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