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Non running Boat Repo Ins question

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    Non running Boat Repo Ins question

    Hello all,

    I am getting ready to file ch7. It has been a long time coming but this looks like the only way out. Here is a quick layout of the situation.

    Me and my cousin owned a boat together. A 28 footer sport/speed boat. Both of us were on the loan (53k owed, USAA is the lender, insurance is through different company). Cousin filed ch7 last sept. and left me with making the whole payment.

    After getting a 20% paycut at in Jan I realized I can't afford it. I am already late on my house (walking).

    Boat payment has been current until a few days ago.

    Here is the part I am worried about:

    We hit a log or something underwater beginning of last summer and it damaged the out drive of the boat. It was covered in our insurance policy so we filed the claim. They gave us $9,000 to fix it. We had every intention to get it fixed, but we spent most of it on engine work (I never had a thought of bankruptcy at the time). So now, he is bankrupt (ch7 closed) I am broke and the money is gone. Boat out drive is still not fixed. I plan to turn the boat in with my bk.

    My question is, do I have to get it fixed still? Are they going to find out I had a claim and didn't get it fixed? Can that be grounds for a dispute. Even if it was running its worth about 15K less than I owe (thanks economy). My lawyer said they would just auction it off, bill me for the difference which would get discharged. But I am a little worried. I still have the old broken out drive I can bolt back on. Thoughts?
    Filed: 4-26-2010 341: 6-15-2010

    #2
    Anybody have any advice? Or a similar situation? I tried searching for this type of situation, no luck yet.
    Filed: 4-26-2010 341: 6-15-2010

    Comment


      #3
      Your lawyer is correct. All they can do get the boat and sell it, then try to get deficiency judgement against you. If they could prove fraud, then you might have a problem. If for example, you bought the boat last month and now the engines are missing and you all of sudden have 20K in your bank account.

      They really don't have any recourse in your case.
      Wife Laid off - 11/16/2009 Missed First Payments - 12/5/2009
      Filed Chap 7 - 12/31/2009
      341 - 2/12/2010
      Discharged - 4/19/2010

      Comment

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