Need Assistance.. Bass & Associates...

[gacreditguy]

A little detail about my case..

Over the past few years I seriously over-extended myself in credit card debt. I was always "anal" about assuring my minimum payments were made on time every month and back last summer my min payments started increasing and by the ned of the year had literally doubled and a few cards (Chase in particular) had decided that I was a risk due to my utilization and jacked my interest rates on the two cards I had with them to over 30% and those payments skyrocketed through the roof and others started to follow suit.

I had searched for every possible solution and finally decided to speak with a local attorney and after evaluating my situation further, I realized how badly I was "robbing Peter to pay Paul" every month and saw that my situation was critical. After a long discussion with the attorney I took the first steps to start the process of filing for BK and beat the hell out of myself daily!

My case was finally filed, CH7 No Asset BK, on 1/29/2006 and have my 341 meeting scheduled for next Monday (3/6) at 3PM.

After speaking with my attorney we decided to reaffirm my auto, home and a small personal secured loan and have received the reaffirmation agreements for those already.

However, today I received notification from my Attorney that two letters had been received from Bass & Associates and he emailed them to me to review. One is for Best Buy ($1105) and the other is for Heliq Meyer/Fowler ($4939). Best Buy would be for a crappy computer and a flat panel monitor. I no longer have the computer, but I do have the monitor. And Helig Meyer/Fowlers is for some furniture (two night stands and an entertainment center) that I purchased last spring.

In the letters they are giving three options: 1- reaffirm 2- redeem or 3- surrender.

I do not feel reaffirming is an option as the computer is gone and the monitor is only worth maybe $150 (at best) and with the other, that furniture is nowhere near that value anymore, maybe $1000-$1500 max as it is now used. Plus that is likely all I could get out of it if I were to sell it.

I would be willing to redeem the property but Bass is noting they will do a lump sum payment and I have no funds available for any lump sums right now. If they will do a payment agreement, I would be willing to follow through that way, but how exactly would this work?

Lastly, if I were to offer to surrender it is asking for me to list contact name and phone number to arrange a time/place for pickup of the goods. Would they actually come and get this stuff?

Also, I have been reviewing my reports and all three reports are now showing zero balances for both of these accounts and noting them as closed.

I want to make the best decision but do not want to get raped by Bass if at all possible.

Any help you all could offer is appreciated.. Sorry for the long post!!

[StaciMM]

For secured loans, the debt will be discharged but the ownership interest that the creditor has remains. That means you either work something out, or there is a possibility that you'll lose the items. I say possibility because the creditor can't just show up and take them... There is time & money involved, and the creditor may not want to bother if they can't get much by reselling the items.

Let them know that you only have the monitor. Offer a basic amount to redeem, or nothing at all. Very little chance that they'll file motions, hire an attorney local to you, etc. for something worth next to nothing. (You can buy a new monitor for $100-200 easily!) The furniture could go either way. They would still have to file motions, etc. and hire a moving company/truck to come & get it. They may not bother.

If you choose to do nothing, keep in mind that ultimately you might lose the items. However, you DON'T have to simply hand them over. Make them go thru all the steps that they are required legally to follow. I don't know the full details, but there is something about a replevin motion they must file to repossess the items. (And they can't do anything without getting the stay lifted.) If losing the items is something you really want to avoid, perhaps offer something reasonable-to you. Such as $100/mo for 12 months on all the property, if that is something you can afford to pay.

[StaciMM]

Ps-With filing under the new laws, there is something about the auto. stay ending within 45 days of the 341 for secured items not reaffirmed. I don't know if this only applies to car loans, or all secured. Even so-if they show at your door, you don't have to just hand the items over. They need to go thru the redtape.

[keepmine]

You've a 4th option. Sign nothing.
Just ignore the annoying pissants and eventually they'll go bother someone else.
As Stacie posted, they don't want used consumer stuff, they want money.
Make 'em work for it.

[SinkingFast]

We are in a similar situation. I bought a new counter style cooktop and wall unit oven for the house we are trying to sell. House hasn't sold and now we're in the first stages of Foreclosure.

Purchased from Sears on a Sears Gold MasterCard. Old Law, it wouldn't have been an issue. It woulda just been seen as a credit card purchase. Sears got into a lot of trouble in the past for coming after people in BK for purchases made on their Sears CC's. New Law is different. Now the view is that those items were purchased with a security interest attached. I told our attny about the items. He asked where they were. Then he said, if Sears says anything about the kitchen appliances, we'll tell them (Sears) where they are so they can pick them up.

Under the Old Law, attnys would waffle and hesitate, then have clients sign reaffirmation agreements at the very last minute. Old Law, the BK Filer had 60 days to change their minds. So, you could reaffirm a debt, get discharged, and possibly closed, and then resend the reaffirmation agreement. That way, if the engine blew in a car, you could just give it back to the Lender with no issue of liability for the debt.

New Law, once you sign the reaffirmation, you're stuck. You cannot change your mind. So be very sure you want to reaffirm to keep whatever property before you sign. Obviously, you are interested in keeping your home and your car, but the furniture may be something entirely different. And, of course, you no longer own the computer.

As far as getting taken by a Creditor, I look at it this way. So you give up the night stands and the entertainment center. So what. Think about what you are gaining in exchange. I would gladly give that up to get rid of thousands and thousands of dollars in debt. Sounds more than fair to me. If that's all they want, I'd tell 'em, "Back that truck right up to the door. We'll help you load the stuff."

[StaciMM]

SinkingFast-with the appliances now being installed in the house, that probably gives Sears even less leverage. I recall hearing something about how in some districts, installed appliances are treated as permanent fixtures and can't be reposessed by the creditor.

[FilingOnMyOwn]

You've a 4th option. Sign nothing.
Just ignore the annoying pissants and eventually they'll go bother someone else.
As Stacie posted, they don't want used consumer stuff, they want money.
Make 'em work for it.

Thats a good point. If they are already reporting the balances on your credit report as zer0, than why would you care, the purpose of the bk has already been served on them! But you could always creatively recycle the paper they send you this crap on. Like roll cigarettes out of it, draw little gory stick figure cartoons on them, or have some good laughs with your friends using a highlighter to emphasize the parts that scared you the most and had you literally crapping your pants with fear.

[StaciMM]

Just wanted to step in again... The debt being discharged does not mean you can automatically keep the secured property. Reporting $0 balance due to BK should happen for all debts in the BK.

For the OP, keep in mind that getting the items would cost the creditor time & money. Ignoring it is certainly a valid option. If you decide to take that road, only do so if you are ok with giving up the items should it come to that. (Based on what you said, I don't see where that would be horrible. Its easy for those of us not involved to say 'do this' but we don't have to live with the consequences. Go with what you feel is best for you.)