I Owe More Than My Motorhome is Worth: What Should I Do?
We’ve all made mistakes. And we’ve all made good decisions that in the long run, had negative consequences. No matter how we go about predicting the future: algorithms, statistics, tarot cards…sometimes we’re wrong because the future has a way of coming at you when you least expect it. Sometimes the unexpected comes back at us in the form of financial issues. One of the most common? We bought something that, at the time, we could afford, but that at a later date we can no longer afford. The rub? In many cases, we’re still making payments. In fact, we don’t actually own that purchase yet…we’re just right in the middle of paying off the loan we took out to buy it!
We’re all pretty aware of what happens when you suddenly can’t afford to make your house payments (flashback to 2015 when it was more common to see a FORECLOSURE sign on a house than a For Sale sign). Similarly, most are familiar with the sad story of vehicle repossession (tow trucks are canny and tend to figure out where you’re going to park your car, just saying). But what about other major purchases that turn around and bite us years down the road…like motorhomes?
Consider This Real Life Example: I Owe More Than My Motorhome is Worth and Can’t Afford the Payments!
Years ago, Jim bought a motorhome. Since then his wife went through a long period of illness requiring hospitalization followed by 24/7 in home care prior to her death, his health deteriorated substantially, worry over health concerns affected his company which experienced a 50% decrease in profits, and his Canadian investment property partner disappeared without a trace with everyone’s share of the profits. Given his recent history, it’s not surprising that Jim is struggling to pay his bills. He’s not sure how he’s going to continue to pay his electricity bill and keep the refrigerator full, much less how to keep a good payment history with the holder of his motorhome loan. He considered selling it, but he still owes $230,000 and it there’s no possible way he would be able to talk someone into paying more than $180,000 (and he’s a dang good salesman). He’s considering selling it for $180,000 and calling it good, but he’s not sure that would work for the holder of the note. In fact, he’s nervous that they might sue him.
Jim fears a lawsuit seeking the remaining balance if he sells for $180,000 or wage garnishment if he just stops paying. He’s even scared that the unpaid debt on the motorhome will provide the creditor holding the note the opportunity to go after his business. He feels like he’s in an impossible situation and he just can’t make himself take any action to fix the problem.
If only there were some way for Jim to legally seek protection from his overwhelming debt. Wait, there is a way to do just that. If you are in a similar situation and you are letting past decisions hold you hostage with MASSIVE payments you can no longer afford, please get in touch. Bankruptcy protections are in place to provide a fresh start for people in situations just like yours. To see if you qualify for a discharge of debt, contact an experienced southern California bankruptcy attorney at Westgate Law today.