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What if PMSI Creditor wants item back after BK7

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    What if PMSI Creditor wants item back after BK7

    What happens after a BK discharge if an item purchased using a PMSI account like Best Buy, Circuit City or Rooms to Go is broken/gone/no access to item and the creditor contacts the debtor wanting the item back or an offer to purchase?

    My soon-to-be-ex is filing a BK7 as soon as he gets enough $$ to finish paying his lawyer. He admitted to me that the expensive game system he had was not his former roommates but was purchased with his PMSI credit account. He sold it a couple of months ago.

    What will the creditor do in this situation? The money and the item are gone.

    #2
    At first, he can ignore the letters/calls to recover the item(s). Items like game systems don't hold any value and the creditor would probably not want such an item back, as it has been used and will more than likely going to need to be inspected and refurbished. In my opinion, the creditor will eventually leave this alone. On the other hand, it's best to be prepared for the worst case scenario, and IMO, he may have to pay the creditor whatever value the game system may have.
    Bankruptcy History:
    Chapter 7 filed - 10/12/2005 - Asset
    Discharged - 02/16/2006
    Case Closed - 11/08/2007

    A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

    All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

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