So we are converting our chapter 13 to a chapter 7 hopefully next month due to income change. Our attorney is telling us that if our payments are still current on our travel trailer we will be able to keep it. Everything i have read says no because it is considered a luxury.... I dont want to continue to make payments if we are truly going to lose it. Anyone else have an opinion on this?
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Unless there is equity in the travel trailer that a Trustee can get his/her hands on, the Court does not care about it. So. . . yes, if you continue to pay the lender you can keep it. The lender may require you to officially take steps to reaffirm the obligation but you will cross that bridge if and when you get to it.
The question is. . . do you really need this item or are you better off not spending money on it. You apparently had a change in your income which, I presume, means you are making less money. Maybe it would be better to let the travel trailer go - just a thought.
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Keep in mind that similar to boats, ATV's, and motorcycles, which depreciate rapidly and are difficult and expensive to resell, your travel trailer would also be difficult and expensive to repossess and sell, and as such, your lender might not want to bother with the effort. Thus, it is entirely possible that if you quit paying, the lender will never repo, and you will continue to have the trailer and be able to use it (though you won't have clear title if you ever wish to sell).Comment
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