Have to surrender luxery item

[TX Bluebonnet]

(Sorry, thought I was in the chapter 7 posting area.)

During my attorney consultation I was told that I would not be allowed to keep our camper that we're paying for and current on. We will be required to surrender it since it's considered a luxery item.

Seems kind of odd that the bk process would force a creditor to take back a secured item that a debtor was willing to keep paying on. This means the creditor will end up selling it at a loss since the camper is worth approx $2,500-4,000 less than the payoff amount, not to mention their additional costs of retrieving and selling it. I'm not exactly upset that we'll be losing an upside down debt and the monthly payment that goes along with it.

Too bad though that I didn't find this out before I'd sent a camper payment in last week. That was because another lawyer had told me that we would be able to keep the camper. At least I hadn't gotten around yet to paying for current registration.

At what point should we drop the insurance on it?

[sunshine mary]

This came up at the consultation?? Is it a state law?

[keepmine]

[TX Bluebonnet]

This came up at the consultation?? Is it a state law?

Yes, it came up in a consulation. As I mentioned, I got two totally different answers from two different attorney consulations. One attorney said I could reaffirm it, another said I needed to surrender it. I retained the attorney that said surrender it. I have no idea if it's a state law or not.

[TX Bluebonnet]

Keep it insured until it's no longer in your possession.
Here's a recent Tx. case involving an RV that may have influenced your lawyers opinion.
Of course, a couple of things stand out. This is a Chapter 13 case and, the debtors were above the means.
You need to ask the lawyer what losing this payment does to your disposable income. Will it force you into a Chapter 13?

RV Deductible Only If Necessary For Support

I'll keep it insured, and thanks for the RV case information. Losing the camper payment of $156 would not push me into a chapter 13 ... or so my attorney says. I think he said something along the lines of the court may say if I can afford a "luxery" payment, then I can afford to instead use that money to pay my creditors, so best to surrender it. That makes sense to me, however not only do I lose what's been paid into it so far, so will the creditors lose out as I stated originally. It's a lose-lose situation.

[sunshine mary]

I just wondered about the state law because we live in Florida and as far as I know were keeping our boat which has a pretty small payment and some equity. Our attorney never mentioned us losing it. She said we may have to pay back the equity but we'll see how it all shakes out I suppose. We've been living with so much stress because of the unsecured debt and if all goes well and we get that discharged... I am willing to lose whatever I have to just to get my life back !

[danaf]

I sort of agree with the logic of your attorney. A camper isn't a neccessity. He's playing it safe for your benefit.

[TX Bluebonnet]

We've been living with so much stress because of the unsecured debt and if all goes well and we get that discharged... I am willing to lose whatever I have to just to get my life back !

I feel the same way. As someone said in an older post (sorry can't remember who); They are just possessions, not our loved ones! Although my husband would beg to disagree if his bass boat was involved in this at all.

I sort of agree with the logic of your attorney. A camper isn't a neccessity. He's playing it safe for your benefit.

I sort of agree with him too, and I definitely would rather play it safe than sorry. I went from wanting to keep it to can't wait for it to be gone in a matter of a couple of days. Guess I wasn't that attached to it after all.

[sunshine mary]

"I feel the same way. As someone said in an older post (sorry can't remember who); They are just possessions, not our loved ones! Although my husband would beg to disagree if his bass boat was involved in this at all."

That is so true things are "things" and can be replaced !! LOL and your husband sounds a lot like mine..We use our boat nearly every weekend so it's really our chosen form of entertainment...But I'm sure we could replace it if we have to at another time.