What happens if I voluntarily return my RV after discharge

[krielly]

I have an RV which I am upside down on. We were discharged from our 5 year Chap 13 in April.

My question is...........what happens if we give it back to the bank? Can they come after me for a deficiency?

How will it report to the Credit bureaus? IIB???? They can't change the DOFD right?? Wouldn't it have to be the date we filed our 13??

Thanks!
Karen

[HHM]

The cannot come back after you. The debt was discharged in your chapter 13. So long as you never refinanced the loan after your BK 13 was filed, you should be fine to just surrender it with no financial consequences.

[krielly]

No, we never refi'd.

Thinking about purchasing another RV down the road, but being upside down now will put us in the same position when we are ready to trade in.

I was wondering if we just let it go, if it was going to affect my credit much? Should just report as IIB, correct?

Thanks!
Karen

[lrprn]

You didn't reaffirm the RV loan when you filed, did you?

As long as you didn't reaffirm the loan, you can surrender the RV now and as HHM said, you are free and clear.

[krielly]

No, we did not reafirm.

So, it sounds like rather than trade in our RV, and having to roll the diff into the new loan, we can just buy the new one outright, no trade, and walk away from the current one free and clear??

Also, how will this report to the credit bureaus? Shouldn't it report IIB with a DOFD of the date we filed our 13 (10/2005)?? Thanks!

Karen

[debtinohio]

Hopefully you're shopping used RV's as they rapidly drop in value and will always be "underwater".

Otherwise, I agree - just walk away from it.

[krielly]

Oh yes. I do know that very well!

[debtinohio]

Mine just got repoed and I already miss it!

Good luck to you and your family and enjoy those camping trips

[krielly]

We were fortunate that we filed in 10/05, just before the laws changed. I'm sure that's the only reason we were allowed to keep it.

Thanks!
K

[krielly]

Wow - what a definitive answer from our attorney..................NOT!!!

"Technically in a Chapter 13 long term secired debt is not discharged, so if you give it back they may come after you.. But my guess is if you give it back and tell them it was in your bankruptcy, they may not come after you."

Prior to this he said - well, if you want to surrender it you will need to schedule an appointment to come in and modify your plan".......So, I wrote back and reasserted that we were discharged already.

Then I got "oh, well in that case........". He was definitely a BK mill type lawyer, but with the law changing just before we filed, we didn't have a lot of time to shop around.

K