100% secured accounts

[billybob37]

I was wondering if Dell and Rooms to go are considered secured even though they are revolving?

[bigreddog]

Dell Financial is owned by Citigroup. It's just another spelling of Sears, etc. Rooms to go? Don't know. But Citigroup isn't going to bother with computers. I think their worries are more on empty houses they helped create right now.

[billybob37]

Right, but I was wondering if they are considered secured, then I will have to pay back 100% to them.

[HHM]

Yes, they are most likely considered secured, thus, within a chapter 13 context, they do get paid.

However, you may want to ask your attorney about stripping the lien on these consumer items, you might be able to reduce the balance owed to the current market value of the item.

[bigreddog]

We owed Dell $9,000 on computers for our sole proprietorship and personal use. Our plan was approved and Dell Financial is getting less that $900 over the length of the plan. It's been 8 mths. on nobody has even inquired about coming and get the computers. It's my belief that they will be listed as a non-priority unsecured claim. It might be different if you owed Dell directly. But Citibank bought their financial services. They did the EXACT same thing as Sears. That's why Sears doesn't come get the lawn tractor anymore either.

[HHM]

To clarify...

The nature of the debt is that it is probably secured, if you financed through Dell directly (or the furniture store for the furniture), those contracts are secured debt financing.

In a chapter 13, you do a few things to deal with this.

1. Since there is a lien on these items, you will need to "specifically" identify them in your schedule of assets, and assign the current market value to each.

If the amount you owe to the lender exceeds the CMV...for consumer items, you generally list garage sale value (look on craigslist or ebay to get a since of how much the items might be worth).
....Then....
2. In your list if creditors, you would list the lender twice.
The first entry for Dell would be a secured claim, and the value of that claim would be equal to the CMV you listed in your schedule of assets.
The second entry for Dell would be an Unsecured claim for the deficiency amount (Loan balance due - CMV).