What would happen if we stop making payments on our RV that we own? 14 Answers as of July 27, 2015Several 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?
The Law Office of Darren Aronow, PC | Darren Aronow
Generally they will sue you and repossess the vehicle. Or you can surrender the vehicle, then they will auction it and charge you for the difference. Or you can file bankruptcy and you are not liable for any of it and they probably wouldn't even take it.
Answer Applies to: New York
Lawrence Lewis | Lawrence Lewis, PC
Huh. You are almost 70, and do not know that they will come and take the RV, sell the RV, and sue you for the balance due on the loan. For example, you owe $ 40,000 on the loan on the RV, which means you do not really own it. They take it and sell it for $ 23,000. You will then be sued for the balance of $ 17,000.
Answer Applies to: Georgia
S. Joseph Schramm | Joseph Schramm
What is likely to happen is that the finance company will repossess the vehicle, sell it at an auction, deduct the amount they receive at auction from the balance due on the loan and file suit in court to recover the balance. If both you and your husband signed the financing statement you you will both be named as defendants in the suit. This means that any judgment against both of you can be enforced against any property that is in either your name, the name of your husband or both your names. If only your husband signed the financing statement then only he can be named as a defendant and any judgment obtained against him can be enforced against only property in his name alone. However, the existence of a judgment for defaulting on a loan can have a negative impact on your credit rating. If you can keep making the payments, you probably should and, in the meantime, look for another person or persons who might be interested in purchasing the RV from you.
Answer Applies to: Pennsylvania
Law Office of Joshua R.I. Cohen | Joshua Cohen
They can reposes your RV and sue you for the difference between what they sell it for and what you owe. It's a little more complex than that. The better question is, so what? Is there anything they can get form you if they win a judgment? Probably not.
Answer Applies to: Connecticut
Edelman, Combs, Latturner & Goodwin, LLC | Daniel A. Edelman
The creditor has the choice of (i) repossessing and selling the RV and suing you for any deficiency, or (ii) suing you for the outstanding principal and interest incurred through judgment. (The judgment also bears interest.) Consider selling the RV yourself (generally you can sell a vehicle for more than the creditor will get) and asking the creditor to release the lien in exchange for the proceeds. If the creditor refuses, it may bar any deficiency and/or result in liability for statutory damages.
Answer Applies to: Illinois