Legal Question in Credit and Debt Law in Florida

I have an RV and can no longer afford the payments. I asked the bank to allow me to place the RV with a dealer for sale and, upon its sale, they grant me a home equity loan for the difference to pay the balance of the loan. They refused and told me their practice is to allow the RV to be repossessed....effectively destroying the credit of their customers. I have since researched this subject and found it would be mistake to place a lien on my house (it is currently free and clear). I would like to do a voluntary surrender, but know that I will not be able to pay any balance due. My question.....Can the bank garnish my pension (retired from government service) or 401 funds? Can they place a lien on my house? What can they do to me to collect the deficiency judgment?

Asked on 8/24/15, 4:02 pm

2 Answers from Attorneys

L. William Porter, III Bogin, Munns & Munns, P.A.

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I have to speak in generalities but generally your pension income is exempt. They could attempt to garnish, but you could raise the exemption and have a hearing held before the applicable judge. They cannot get to your homestead. They can only go after, and attempt to attach non-exempt assets. In Florida, you can exempt $1,000 per person of personal or real property (not your homestead- it is separately fully exempt under our state constitution), or $2,000 per married couple. You also get to exempt $1,000, or $2,000 per couple for equity in a vehicle. In addition to that, you get to exempt things like IRA's and life insurance. They can try to go after your non-exempt assets. They can also sue you, obtain a judgment for the deficiency and record a certified copy of the judgment in the county public records of any county where you own or could own (non-homestead) real property and it acts as a lien against non-exempt real property until satisfied or otherwise dealt with (e.g., bankruptcy).

Answered on 8/25/15, 5:49 am

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