RV Repossession

I had a RV repossessed in California. The bank sent me a notice of deficiency stating I owe $14,000. Is there any way to bring this amount down? If I don't pay this, or set up payment arrangements, what happends? Thank you.

I posted this message, can someone please help me. Thanks.

They will have to sue you if they want to collect. And they will often not do that. You can offer a payment plan or if you wish ignore them and see what they do.

If you were to declare bankruptcy the debt would be eliminated.

It may not be easy for them to collect even if they win in court if you no longer have many assets etc.

Thanks for the reply. I am wondering if they might be willing to accept a lower payoff amount like companies will do with credit cards. Have you heard of this?

They don't have to sue in order to collect. Even if they do, there's no guarantee it will be paid. The debt is legally yours.

Your best bet is to speak with the loan officer of your bank regarding a repayment plan. Usually, once property is repossessed, the bank attempts to auction it, or sell it, for the highest price they can get for which the loan amount was borrowed for. Remember, they loaned you money in good faith that you would pay it back. Now, they are out money and they have to recoup it.

If they have already resold the vehicle and are now stating that you owe the remainder ($14,000), it is your responsibility to pay that amount. You agreed to that in the note you signed when you were lent the money.

Failure to pay could affect your credit score and your ability to obtain credit in the future. It is in your best interest to speak with your loan officer for possible alternatives regarding a payment plan.

I forgot to add that the worst thing you can do at this point is "ignore" the problem and see what they do. The only time you should ignore a bill is when it's from a collection agency. And at that, I would recommend a written request for validation of debt. If they cannot validate the debt, they cannot insert the item on your credit report and all attempts to collect must cease.

In addition, bankruptcy is a last resort and if you can avoid this at all, please do so. Bankruptcy isn't the quick fix many believe it to be. It is time consuming, costly (think attorney fees), and humiliating. Never resort to bankruptcy unless there truly is no other recourse. Your credit will be affected for 10 years as a result of filing bankruptcy and in our economic times as they stand today, that would be financial suicide.

Good luck to you.