DoIOweYouII Posted March 17, 2005 Report Posted March 17, 2005 When a person declares bankruptcy (Chapter 7) and there is a financed boat and jet ski involved (no equity in either), does the trustee require the lender/lein holder to take these items back. If so, does the trustee handle the transition of the secured items? What is the likely scenario that will happen?
bingo Posted March 17, 2005 Report Posted March 17, 2005 If you decide to return those items, you'll just arrange an appoitment with the creditor to collect them. The creditor will do so at their expense.
DoIOweYouII Posted March 17, 2005 Author Report Posted March 17, 2005 Bingo, thanks for the response. The thing that confuses me is the part, "if you decide to return those items". If I file Chapter 7, will I have any choice in the matter? Are you saying that the trustee could allow me to keep paying on these secured items items assuming the fact that they can't be liquidated/sold because there is no equity in them?
bingo Posted March 17, 2005 Report Posted March 17, 2005 You've the right to keep them if you like as long as you keep paying. Some districts require a formal reaffirmation agreement .If you keep paying and don't reaffirm you can walk away at any point and the debt is considered dischrged. If you formally reaffirm and then change your mind you're responsible for any deficiency should default later.Personal opinion here but bk is for a freah start. Why jeopardize the new beginning by reaffirming something with a negative equity and will continue to depreciate? Plus, the expense of insurance, maintenaince, operating cost and likely dry storage in the winter.
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