Q: I own a home and a RV. All credit card debt is paid off. The RV payment is to high. We owe more than the RV is worth.
What are my options to keep my house but to get rid of the RV?
Depending on your actual financial and cash flow position, a Chapter 7 might be what you are interested. If the RV is your only debt bankruptcy seems a bit extreme; however, it is what the number say.
Like the other attorneys who have responded, a Chapter 7 would allow you to surrender the RV and discharge the loan in its entirety. A Chapter 7 allows you decide whether you want to keep secured debt or get rid of it. In your case, you can retain your house and keep paying the mortgage and surrender the RV and discharge that loan.
However, depending on your income and the equity in your house, you may need to opt for a Chapter 13. This still allows you to get rid of the RV, but you may have to pay the deficiency balance (loan over ultimate RV sale price).
A: There are several options for you. You can file Chapter 13 bankruptcy, and everything will be reduced to a plan that you pay off monthly until done. You can file Chapter 7 bankruptcy and leave the home off of it, making regular payments on the home. If you do not desire bankruptcy, you may want to negotiate a compromise on the RV and do a payment plan. I would speak to a local bankruptcy attorney.
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