Sold secured property, now what?
The last purchase we (the wife and I) made on credit was about 1k of extremely overpriced furniture when we were relocating in December of 07. The furniture consisted of a dining table/chairs, a dresser, and a tv stand. At this time we still had no idea we were heading for BK (filed almost a month ago). When we finally had to move back to the town we had relocated from we sold the dining table for like 160 bucks. I did not know at the time we were going to file BK (this is two months ago I sold it), nor did I have any idea what "secured property" was. Still have possesion of the dresser, tv stand broke!
Fastforward to BK, I filed the furniture company as an unsecured debt, although at the time I was aware there was a possibility they were a secured creditor (lost the contract). I choose unsecured because it would be easier for me unless they start fussin.
Fastorward to today. I got a reaffirmation packet in the mail from them today, although I have had no communications with them since filing. They are offering to lower the interest from 26% (why did I ever agree to that! never again my friends) to 10% on a bill of 1300 bucks. Then this evening I gota call from the lady asking if I had got the packet and if I could please sign and return it before my 341 in a few days. I played dumb (not much of a stretch) on the phone because i really didnt know if I wanted to play the "violation of stay card" or what. So I simply told her I would look it over and try to get it back before then.
Other facts: previously bought 2k of furniture from same place, had a 200 dollar balance in dec 07 which was rolled into new loan with new purchases. Only made 1-2 payments after getting new furniture.
Questions:
1) I sold the secured property, what are the possible repercussions if I dont reaffirm and just tell them I sold there stuff?
2) Is the trustee going to be upset at me if they show up at the 341, ask for thier stuff and I say I sold some of it?
3) Why the heck would I possibly want to reaffirm a 1300 dollar debt on some furnitre (just the dresser now) thats only worth 200-300?
4) Can the furniture company file any motions besides "relief of stay" that mght be relevant to this situation?
5) What should I do? Call her back and say shes violating the stay? Call her back and say im not reaffirming? Dont call or answer the phone?
I really wont reaffirm unless I thought it would jeapordize my BK not to do so. I like the dresser, but if its neccecary to give it up then I have no problem with that. I would really like if I could have my cake and eat it to, in peace.
If all else fails hopefully the trustee believes me when I say I didnt know I was going into BK, nor did I know t was secured, when I sold it.
Thank you for your help again everyone.
Fastforward to BK, I filed the furniture company as an unsecured debt, although at the time I was aware there was a possibility they were a secured creditor (lost the contract). I choose unsecured because it would be easier for me unless they start fussin.
Fastorward to today. I got a reaffirmation packet in the mail from them today, although I have had no communications with them since filing. They are offering to lower the interest from 26% (why did I ever agree to that! never again my friends) to 10% on a bill of 1300 bucks. Then this evening I gota call from the lady asking if I had got the packet and if I could please sign and return it before my 341 in a few days. I played dumb (not much of a stretch) on the phone because i really didnt know if I wanted to play the "violation of stay card" or what. So I simply told her I would look it over and try to get it back before then.
Other facts: previously bought 2k of furniture from same place, had a 200 dollar balance in dec 07 which was rolled into new loan with new purchases. Only made 1-2 payments after getting new furniture.
Questions:
1) I sold the secured property, what are the possible repercussions if I dont reaffirm and just tell them I sold there stuff?
2) Is the trustee going to be upset at me if they show up at the 341, ask for thier stuff and I say I sold some of it?
3) Why the heck would I possibly want to reaffirm a 1300 dollar debt on some furnitre (just the dresser now) thats only worth 200-300?
4) Can the furniture company file any motions besides "relief of stay" that mght be relevant to this situation?
5) What should I do? Call her back and say shes violating the stay? Call her back and say im not reaffirming? Dont call or answer the phone?
I really wont reaffirm unless I thought it would jeapordize my BK not to do so. I like the dresser, but if its neccecary to give it up then I have no problem with that. I would really like if I could have my cake and eat it to, in peace.
If all else fails hopefully the trustee believes me when I say I didnt know I was going into BK, nor did I know t was secured, when I sold it.Thank you for your help again everyone.
. I am wondering if they will have to goto court after the BK to get a judgement, but I have no idea.
Comment