Are there any legal actions to defaulting on an RVon our loan?
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Are there any legal actions to defaulting on an RVon our loan?
We are really upside down on this loan. If we default What will happen to us? Can they garnish our wages or take our income tax refunds to make us pay back the loan? I don’t mind the bad credit but I need to know if they can take money from us.
Asked on March 23, 2011 under Bankruptcy Law, Kansas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Yes, if you default on a loan, the besides (presumably) repossessing the RV, the lender or financing company can sue you for any additional amounts you owe on the loan. Thus, say you owe $10,000 more, and the RV, after being respossessed, is sold for $6,000; they could sue you for the extra $4,000. If they win, they could potentially garnish your wages or your bank account (i.e. take money from your acccount, including moeny deposited as a result of a tax refund); they could also potentially force the sale of other belongings of yours to satisfy the judgement or put a lien on any property you own. And they have several years to do this, so they could even wait to see if you get into better economic shape before taking action.
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