Legal Question in Credit and Debt Law in California

Re: Can't keep our boat

Unfortunately, its probably not that simple. The lender, whether you voluntarily surrender it or they repossess it, will then attempt to sell the boat through wholesale auctions. When they sell the boat, they will most likely get much less than what is owed (unless you have a lot of equity in your boat). By "much less", I mean less than half of what the boat is worth. Then, the lender will look to you to pay them the loss they incurred (difference between the loan amount plus costs of repossession and remarketing, and the amount they actually got at wholesale auction). You will very likely wind up with a rather substantial debt to the lender when all is said and done. Is there no chance of selling the boat? I know this is a difficult market, but you'd be better of selling the boat if at all possible - even if you had to kick some money in to the deal to pay off the loan. Otherwise, if it has to go back to the lender, I'd be as cooperative as possible with them - call and explain your situation, and ask how they want to handle it. They might be willing to work something out with you to keep the boat from being repossessed.

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Re: Can't keep our boat

Unless you file bankruptcy, you will probably have substantial liability. The finance company will be under no obligation to accept payments from you. Instead it will probably file a lawsuit against you and obtain a judgment.

If you qualify for and file bankruptcy, you may be able to walk away from this and all your other debt, owing nothing, and that will be that.