Hello and thank you for your question today.
I assume you are asking what could happen if you stopped paying the loan.
They will repo the boat and then sell it at either an auction or private sale.
Whatever money they get for the boat will be applied to the balance owed and you will still owe the remaining balance.
If you do not pay the remaining balance then it will go into collections
They could sue you for the remaining balance and that is probably what I expect to happen since this is a really large amount.
If they get a judgment against you.
With a judgment there are more things that the creditor can do to collect the money from you.
As far as your house is concerned. that is protected by the homestead laws.
Florida's homestead exemption providing an exemption from forced sale before and at death are among the most protective in the US as it provides "no limit" to the value of certain real property that can be protected from creditors. The property tax exemption clause of Article VI renders property tax-free to the extent of certain dollar amounts in the value of the homestead.
With a judgment they can garnish your bank account and in some situations they can garnish parts of your wages.
lorida’s Wage Exemption Statute provides relatively generous protection for those who meet the definition of “head of family” and are facing a judicial garnishment or filing for bankruptcy. To paraphrase the Statute, a head of family who pays for more than 50% of a dependent’s living expenses can not be garnished if their net income after deductions is less than $750 per week. If the head of family earns more than $750 per week after deductions, then they can only be garnished on the amount that exceeds $750 if they signed a written waiver allowing a creditor to seize income.
Of course it will impact your credit and if they do get a judgment against you then that will go on your credit as well as a public record.
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I guess that pretty much answers my questions. I dont think i need to file bankruptcy as I can pay all of my other bills but that may be the better option?
I would wait and see what happens. Its possible that they will never sue you. If they don't sue you then there is no need to file bankruptcy.
Also, they may be willing to settle for a very low amount that you can afford.
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