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Emeritus23, Attorney
Category: Bankruptcy Law
Satisfied Customers: 665
Experience:  some 28 years of experienced in Chapters 7 and 11
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We bought a yacht and maintained it for approximately 2 ...

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We bought a yacht and maintained it for approximately 2 years, when epmployment changed and could no longer make payments. It was voluntarily surrendered and after 6-7 months it was sold for alot less money than owed. Now, of course the bank is looking for the balance, which we connot afford or have resources for. What if any options are there?

I am assuming that you signed a valid contract, that the bank fully complied with all the provisions, and that the amount they are asking for is accurate.

One thing I would want to look into is whether the sale, which occurred after you surrendered the yacht, was fair to you, and as specified in the contract. Was it a public or private sale? Was reasonable notice given so as to get the best possible price?

As far as options are concerned, there are several:

  • You can propose terms for payment of the deficiency. You might propose paying less than the full amount, and so much per month. The bank, of course, doesn't have to agree, but it wouldn't hurt to ask.
  • You could do nothing and, if they sue you, let them get a default judgment. If they do, they would have to attempt to collect by siezing your non-exempt assets.
  • You could file for bankruptcy protection.
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