Deficiency balance on surrendered boat

[greenthinker]

We surrendered our boat to the lender when we decided to go forward with filing for Ch 13. We are planning to file at the end of this month, and in the meantime we received a notice of deficiency from Bank of America for almost $22,000. They failed to notify us of the date and location of the sale, and the price that they sold it at was insanely low, about 35% below retail for that model year and condition of boat. Knowing that we owed approximately what the boat was worth on the retail market, I was expecting maybe a $10,000 deficiency, worst case. I never would have expected it to sell for such a ridiculously low price. They also charged us nearly $800 for "repossession costs" even though we made arrangements with the recovery company in advance, and made it very easy to come to our house and pick up the boat. Can this deficiency balance be challenged in or out of Ch. 13?

Thanks!

[frogger]

Can it be challenged? Anything can be challenged, however the fact remains that the sale has already taken place, and the "ridiculously low price" is what that boat was worth on that particular day.

List it on your Chapter 13 and move on........

[MOMof3]

Unless you are paying your unsecured creditors 100%, then I wouldn't waste your time on it. They will just get a bigger slice of the pie.

[greenthinker]

We are paying 100% to our unsecured creditors, so that's why I'm bugged about it. But, as frogger indicated above (and our attorney said the same thing basically), there really isn't anything that we can do about it but list it in our plan.

So,...I'm over it...

[despritfreya]

We are paying 100% to our unsecured creditors, so that's why I'm bugged about it. But, as frogger indicated above (and our attorney said the same thing basically), there really isn't anything that we can do about it but list it in our plan.
So,...I'm over it...

That is great that you are over it but I just had to add. . .

Even if you were not “over it” and wanted to question the "reasonableness" of the sale (you would have to show that the sale was not done in a “commercially reasonable manner”), for every dollar you potentially were to knock off the deficiency claim you will simply add to your own legal fees. Most likely no savings therefore not worth the effort.

Des.

[jetsfan2010]

not much u can do at this point