Repossessed Boat Deficiency

[greenthinker]

Hi All,

We surrendered our boat to Bank of America, and were slapped with a $21K deficiency. Their collection department called me today, and I explained that we are in the process of filing, and have retained an attorney, and provided our attorney's name and phone number as we were instructed to do. The woman said that if I did not make a good faith 3% payment by Monday, it would go to their litigation department and they would pursue legal action. I don't intend to pay them anything.

Given this phone call, I'm wondering how much time we have to file because we are first trying to get our mortgage modified (also Bank of America) to capitalize the arrears amount. I'm afraid that we'll get sued for the boat deficiency amount before we file if we have to wait too long for the mortgage modification.

Any advice would be greatly appreciated! Thanks!

[LadyInTheRed]

It's hard to know when and if they will sue. The woman who called will say whatever she thinks will get you to pay. It may not really go to the litigation department. If it does go to the litigation department, they may decide not to file a suit. Just continue with your preparations to file so that if you do get sued, you can get your BK filed before they get a judgment so you don't have to go through the extra steps and expense of getting the judgement vacated after the debt is discharged. I don't know Washington's procedures, but you usually have at least 30 days after you are served with a lawsuit before they can get a judgement.

[greenthinker]

Thank you for your reply. That is basically what I thought, but I feel a little better hearing it from someone else!

[catleg]

Normally you'll get a 30 day demand letter before a suit is filed. You'll know it when you see it. Verbal threats over the phone from some collector don't mean anything. A 30 day demand letter states this is your last chance and we're going to sue you. Usually it tells you the balance is due in full and asks for payment to be made within 30 days. Or else, they'll start a suit.