Legally, they will receive a judgement against you for the remaining balance of the RV, plus any court costs and attorney's fees that might be involved in getting that judgement. If you don't pay, they can take you to court and get a lien on any real property you might have, or garnish your earnings.

Of course, if your RV was owned by a corporation, they may not be able to attach the judgement to personal earnings, but only corporate assets.

You may be able to make arrangements with the remaining balance and make payments. In all cases, it's important to remain in contact with the lender throughout the entire process.

Good luck, I hope your business picks up :)

Does your answer refer to all states? (We are in Arizona)

Also, would going through a debt help agency that we could make payments to be beneficial and would it stop any legal action from original creditor?

Yes, my answer refers to all states. A debt help agency might help, but remember, your creditors only have to accept these payments voluntarily, and can still take legal action. The only thing that can force a creditor to take payment arrangements would be a court ordered payment as the result of a re organizational or complete bankruptcy.

Well, the lender just threatened my husband that if we don't come up with the $ by Tues. they will bring in their attorneys. Would you recommend that we look in to bankruptcy at this point? ughh!

Depending upon what your financial state is, and if your music company was incorporated, yes, I would consider bankruptcy protection. Since you've given back the RV, it may be now considered a unsecured loan, and you might be able to clear the debt entirely, so it might be worth it to speak to a bankruptcy attorney.

Seriously, I don't understand why lenders threaten people if they can't come up with the cash...if you don't have it, you don't have it.