Wanna hear something funny?

[quinnpa]

I just got a letter in the mail the other day from one of my cc's that was discharged in our BK asking us to reaffirm.

It was a best buy store card and they were threatening to take back the goods...

That's funny...that computer I bought last year is long gone!!!

Why would anyone reaffirm and unsecured debt that has no benefit to them...what am I...stupid??!!

[StaciMM]

Best Buy's credit agreement them gives them a security interest in the items bought, so it is secured. But, if you no longer own the items, they can't do anything. (Pretty much unless they get you to admit you gave it away or sold it recently.)

[Lightning]

They can demand that you pay the remaining secured portion of the loan since you kept the property without paying for it. Whether it is still in your possession or not is irrelevant. If you can't turn over the property, they can demand the money.

This is no different than if you had filed bankruptcy on a car loan and then sold the car to someone else without reaffirming the loan.

Taking something that you didn't pay for isn't funny.

[edwards2]

Lightning - this is one of the times I totally agree with you - it isnt funny. The company is entitled to their merchandise. That kind of attitude sickens me. Those of us who were left with no options but filing BK because of horrific circumstances are trying to dispel the stereotype of people who do file and then along comes someone like him with an attitude of screwing the company over. Filing BK is a moral and financial decision with consequences. He was given a second chance; that apparently was a mistake. He is no better than people who run up their credit cards, spend money extravagantly and then file BK.

[StaciMM]

(Taken from moranlaw.com)

These security interest are lien rights that the seller retains in the goods purchased when the seller finances the purchase. The lien can be created by a specific written agreement or may arise when the item is financed on the seller's revolving credit plan or store credit card. This kind of lien does not have to be perfected by the usual filing of a UCC financing statement.

These liens can be avoided if the lien attaches to household goods, clothing, jewelry, pets, and musical instruments, tools of the trade or professionally prescribed health aids.

To avoid a lien, the debtor must file a motion setting forth all of the statutory elements that entitle him to avoid the lien and serve the motion on the creditor whose lien is to be avoided. 11 U.S.C. 522(f).

[StaciMM]

Some credit cards hide info in their terms about making your purchases into security interests. (Yes, everyone should read the terms but I doubt many read EVERY single bit, and might not understand it if they do.)

Edwards-what is the difference if someone files BK on a Best Buy card where they bought $3000 in products a year or 2 ago and have been making payments but still owe a good bit, or a generic VISA where they bought $3000 in products a year or 2 ago and have been making payments yet still owe a good bit.

The OP is talking about a store credit card, and never indicated he/she was trying to bilk the system. They did indicate the main item purchased is no longer around-as happens with most of the things people put on credit cards.

[tinroofrusted]

Some credit cards hide info in their terms about making your purchases into security interests. (Yes, everyone should read the terms but I doubt many read EVERY single bit, and might not understand it if they do.)

Edwards-what is the difference if someone files BK on a Best Buy card where they bought $3000 in products a year or 2 ago and have been making payments but still owe a good bit, or a generic VISA where they bought $3000 in products a year or 2 ago and have been making payments yet still owe a good bit.

The OP is talking about a store credit card, and never indicated he/she was trying to bilk the system. They did indicate the main item purchased is no longer around-as happens with most of the things people put on credit cards.

I agree with you here Staci, and with many computers only lasting an average of 2-3 years, it's awfully hard to enforce a lien on something that quite frankly, wouldn't even be worth the trip to the person's house to pick it up, even if they did have it.

However, in this case, the guy/gal bought the computer just last year, so my question would be, where is the computer now, and is there any way to get it back or return it? A year is one thing on a computer. It should still be functioning ok. If it were 2-3 years older, I wouldn't say anything. Did it completely die? If so, let the company know that the computer was junk, and it's no longer functioning.

[tinroofrusted]

I also want to add that in this case, it looks as if the debtor is discharged, and therefore, I believe that the creditor no longer has any legal jurisdiction at all.....

[quinnpa]

Chill out people, I meant it was funny in the sense that it was a creditor asking me to reaffirm for a discharged debt with no benefit in doing so.

The card was a $500 card that was paid off a long time ago and just had a small balance that had to be inlcuded in the BK. So before you go jumping on people make sure you know the facts. The computer that I used the card for was paid for a long time ago which means they have NO SECURITY INTEREST because unless they want some DVD's I bought with it, there is nothing the card was used for. I only mentioned the pc as it was the only real thing of value I bought and don't have anymore.

So get off your horse!

[edwards2]

Maybe you could have explained it to begin with. You will have to admit the way it was phrased it could have been interpreted another way and maybe those of us who filed Bk and continue to get flack for it are a little hypersensitive. I am glad you did embellish on what happened. In my defense at least, I am battle weary from it all. I apologize for misunderstanding.

[quinnpa]

It's all good, no harm, no foul.