Legal Question in Credit and Debt Law in Massachusetts
My husband has been out of work due to illness since February. He just got on disability but can no longer work. We have a loan for a boat that we purchased 3 years ago and have been trying to sell but have been unsuccessful. I cannot keep up with the payments and I need to know what happens if I stop making the payments. We have a home that we have been making payments on for the past 12 years too.
2 Answers from Attorneys
You might try filing a homestead on the house (if you have not already done so). You may try contacting the creditor (always with a writing) and ask for loan payment reduction or to return the boat in exchange for full loan forgiveness. It may be difficult to get their cooperation, but worth a try. Your attorney may be helpful in negotiating a settlement with the creditor, while still protecting your credit from the results of this situation. Good Luck!
Do not just stop making payments on the boat as it will be repossessed hurting your credit and costing more money than if you could renegotiate the loan or sell the boat to pay off the loan.
You should also consider filing a declaration of homestead on your home to prevent effective liens being levied on it. Consult an attorney to help with these negotiations. Good luck!
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