QUESTION
Can you sell my RV after the bank discharges the loan?
Asked on Jun 23rd, 2014 on Bankruptcy - Illinois
More details to this question:
I had a loan for a 5th wheel camper. Due to job loss and stolen vehicle I was unable to keep up payments on the loan. Within 6 months after my last payment to them the bank has discharged the loan. Am I allowed to sell the camper or what is the best solution? I am guessing that the bank will report the loan as a loss to the IRS and I will be responsible to that amount taxed. My goal would be to reduce any impact as much as possible. I wasn't sure if it would possibly be best to let the bank know where the vehicle is to pickup and sell or if I would be best to have the dealer sell and hold the funds to cover the taxes. My thought is that the bank may want nothing to do with any of it since they have discharged. If that is the case, can I sell?
2 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
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I'm afraid it is impossible to counsel you with any surety given the outline of facts which you have provided. You state that the bank has discharged the loan, as it also released the lien on the fifth wheel camper. You are correct that the bank, if it is indeed forgiven the loan, will potentially be sending you a 1099 for forgiveness of debt which is taxable income to you. I would want to look at all of the various paperwork, the outstanding balance on the loan, the title record on the fifth wheel camper prior to the time I would dare give you any advice as to your best course of action.
Answered on Jun 25th, 2014 at 4:39 PM
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
You need a release of the bank's lien to sell the RV
Answered on Jun 25th, 2014 at 4:35 PM