Legal Question in Credit and Debt Law in California

Yes, you are correct to worry about the bank pursuing you for a deficiency post-repossession. There is little doubt, even if you owe less than the FMV on the boat, that they will have a deficiency, and will attempt to pursue you for that money. They will eventually file suit, and obtain a judgment. With that judgment they will record a lien with the County, which will effectively place a lien on all property you own. It sounds like you may not have any, or very few assets that might be subject to being levied, but understand that once the creditor has a judgment, they can levy bank accounts, the unencumbered travel trailer, and if your husband is self-employed, they may be able to levy the business he owns. Without a thorough analysis of your financial situation, it is irresponsible for me to opine that you are judgment-proof; to the contrary I think you have some exposure. I do agree, however, that if you are parting-out a dune buggy to pay rent, you need to let the boat go and stop making those payments. I would also sell the trailer (even though that sale may later be attacked as a fraudulent conveyance) to somebody not related to you for whatever the FMV for the trailer is today, and use that money to attempt to settle your debts and/or pay monthly living expenses. I would suggest that you speak with someone about your situation, as it does not really lend itself to a black and white answer here in these forums.

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