Full question:
We are behind on the payments for our motor home. We would like to keep it but that doesn't appear likely. We would like to know the consequences of voluntary repossession. We are aware that our credit will be affected, but are concerned there could be other consequences, such as garnishment, etc. We owe approximately $100,000 and have about 13 years left on our loan. Our financial situation has changed. Although we would like to keep it, we can't.
- Category: Debts and Credit
- Date:
- State: Arizona
Answer:
In a voluntary repossession, the lender will sell your motor home and may seek to collect any remaining balance between what you owe and the sale price. They can also add costs for towing, repossession, storage, late fees, auction, interest, and reconditioning.
If the lender obtains a judgment for these amounts and you cannot pay, they may pursue a judgment lien on your assets, garnish your wages, or attach your bank accounts to collect the debt. A judgment lien is created when a court grants a creditor an interest in your property based on a court judgment. This can lead to the sale of your property to satisfy the debt. The lender becomes a 'judgment creditor,' while you become a 'judgment debtor.' After placing a lien, the creditor can sell the property to recover the owed amount.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.