Turn in motorhome back to bank

Peaeye10445321 wrote:
Chapter 13. It works and you don't lose everything

All chapter 13 really is, is a court documented payment plan. It's still bankruptcy and it still wrecks your credit. Also, careful considerations have to made to ensure the court doesn't demand you liquidate some assets, like your house. You can't pick and choose what gets included in a bankruptcy nor the plan. The court looks at all your liabilities and assets. So while you can purposely walk away from the responsibility of one loan, a bankruptcy includes ALL your loans as well as considers all your assets. OP hasn't responded back yet but I didn't read any mention of financial hardship. Just that he didn't want to pay for the MH anymore. If a bankruptcy court determines you have "luxury" items and loans they can be excluded or contested. I used to manage bankruptcy operations for one on the largest N American banks and we would purposely look for luxury items to contest in a bankruptcy and advise the local attorneys which cases to pursue on. We won a lot. So the OP might try and file a bankruptcy because of his Rv, and the RV might be excluded and his house included instead. And if the math works that you have the income to support your liabilities it could be declined altogether.

A court looks at it this way, Mr. consumer put himself in dire straights by buying luxury items he couldn't afford, therefore asking to be absolved or cause hardship to the lender through no fault of their own and further asking Joe Taxpayer to pick up the tab on reduced bad loans or absolved debt, they often get declined. Banks don't just lose the money, in a bankruptcy the government funnels funds back to the lender to soften the loss. And guess where the government gets their money.

If Mr. consumer buys things that are critical like a house and loses his job, then a bankruptcy scenario may be the best option.

But you can't just willy nilly file bankruptcy anymore if you don't feel like paying for your boat, RV or second home.