Balance due less than value

[Introuble2008]

We're new at this --- we're on fixed income and have found ourselves without the funding we expected. Needless to say we're upset.

We've been reading about bankruptcy and have a question. We have an RV.....we tried for 2 years to sell it. The value all the dealers would give us for it is approx. 1/2 of what we owe. We tried for those 2 years to sell it on the open market....only 2 bites and they were not acceptable (only because they were even lower than the dealers). If we file bankruptcy, will we have to pay the difference from what they sell it for?????? Or is all that cleared off then? I know this may be a stupid question, I think we're not able to absorb this --- this is all a shock to us!

[woeisme]

It depends on what Chapter BK you file. If you file Ch 7, then the finance company for the RV has to eat the loss. If you file Ch 13, then you may have to pay back anywhere from 0% to 100% of the difference between what it's worth and what you owe, depending on how much disposable income you have and all your other debts. If you are below the mean income for your state, and have less than $100 disposable income each month to put into a CH 13 plan, then you should be able to file CH 7, let them repo the RV, and the difference between what they sell it for and what you owe gets discharged in the CH 7.