Michigan help with keeping RV

[BAR]

I posted about this in a cross collateral thread and figured Id ask if anyone from MI has come across this situation.

I am in Chapter 7 . We had our 341 meeting.

On our paperwork submitted we listed an RV and listed it as surrender.

The lawyer told us to do it this way because it is considered a luxury item. The lawyer also told us, to be able to keep the RV, we just keep making the payments, and the CU wont take the RV and that is how we keep it. Any MI lawyers do this or other chapter 7 filers do the same thing?

Nothing was asked about the RV at our 341 meeting.

Now my question is: Is this true, can we just keep making the payments and everything is fine with keeping the RV?

Anyone ever heard of this being done?

Thanks in advance, this forum is a godsend for me thats for sure!

[BAR]

I forgot to add the lawyer called it pay and retain. I did a search and found lots about this on cars but nothing on RV's. Any help would be greatly appreciated.

[AlmostAmos]

It really depends on who the lender is and if there is equity in the vehicle or not. I did this same thing w/ a boat & they were quite happy to receive the payments until I stopped paying & told them I wanted to turn it in. Follow your attorney's advice. There IS a possibility they will try to get it back but w/ the current market, they probably will not. Why would they want to have to sell a vehicle, at a loss, when they are receiving your payments each month? If you are worried, call the creditor and tell them that you intend to keep paying & see if that is ok with them.

-AA

[BAR]

Thanks AA I appreciate it. I did call them and of course they asked if I would reaffirm the trailer. At the time I told them I would reaffirm, but now that I have read up on it, when I call in my payment Im going to tell them no deal on the reaffirm. I want to keep it as I have alot of time and work invested into it and it is set up exactly the way we want it now.

There is no equity in it at all as we bought it in late 2009, and it is a 2004 so it is already 7 yrs old and it probably wouldnt get much at an auction. But hey if they want to take it, they can have it. I can always get another one in the future.

[AlmostAmos]

Well, of course they want you to reaffirm the loan. It is in THEIR best interest. When you talk to them next, if asked, tell them that your attorney will not allow you to reaffirm it and that you'll just continue paying the payments. They want the $, not the trailer. Good luck to you!

[BAR]

Thanks for the advice AA I appreciate it. Im going to do just that, blame it on the lawyer!

[Pandora]

hi Bar

one question - why are you talking to the CU directly? Did you / your attorney authorize it? Just in them speaking with you asking about payments / reaffirmation outside of your attorney could result in a BK violation; however since you're initiating the phone calls, its not so easy re: violations.

You really should be discussing everything with your attorney directly before calling any creditors.

[BAR]

Hi Pandora,

I called them to make a payment on the RV so that it wouldnt get behind.

I know now Im not supposed to talk to them and was scolded by my lawyer too. I didnt know that I wasnt supposed to talk to them at all. Im sure my lawyer mentioned it but, I didnt have this site to help guide me at the time so I did something stupid.

I called and made the payment and told them I planned to pay and retain the trailer, thats when the CU rep asked about the reaffirmation.

The thing with my lawyer is, he is one of them that ....well, is what I call a "cattle lawyer". That is.... I am nothing but another cow running through the shoot that he has to deal with and the less he talks to me the better of it is for him because he can get more cattle going through the shoot and make more money. He never has time to talk it seems, and when he does call to talk, he is always in a rush and makes you feel like you are bothering him just to have him on the phone. So the phone calls are short and he makes you feel like your a bother not a customer.

So this place is a godsend to me thats for sure. I have gotten more answers/ information from this site in the past week than he has given me in the past few months.