Things in storage....need advice

[originalhealer]

Okay, I filed Ch 7 Pro Se on July 20, 341 was on August 17, last day to object: Oct 17.

Situation: I moved out-of-state a distance of 900 miles. My initial moving quote to pack up my entire one bedroom-apartment (crowded, but just a one bedroom), was $2200. I gave the movers a down-payment of $700 and was going to pay them the balance of $1500 in payments when I got settled in my new location. Well, when they put all of my stuff on the truck and were getting ready to leave, they said it would actually cost me $4600! So, now I have a balance of $3900.

In the meantime, I have been paying monthly storage payments to them of $260 per month, then in April their rent increased to $330 per month.

As of now, I am behind approximately $2100 in storage payments and still owe them the move balance of $3900.

I included them in the bankruptcy and listed all of my belongings as exempt. Including them in the bankruptcy has prevented them from auctioning off my things. Just to give you an idea of what is in there:

New bedroom suite
New living room suite
New kitchen table
New dining room table with six chairs
Oriental rug
China cabinet with china (belonged to my mom)
Large wall mirror
Clothes
Books (many)
19" color TV, DVD player, handheld "boom box" with CD changer, etc.

Many things that would cost me a lot to replace or are irreplaceable. Most of the furniture I had purchased just ten months before I decided to relocate.

So, my situation is that I basically have no hope for affording to get my things moved down except for one thing: my student loan refund.

I know, I know, I don't need to continue to debt. I am already in this mess and trying to slowly work my way out of it.

I am expecting a loan refund in about two weeks of approximately $3400.00. I wanted to know which of the following options, if any, should I do with the money:

1. Negotiate a deal with them to just offer them the $3400.00 to cover the move and have them write off the storage balance since that is included in the bankruptcy.

2. Use part of the money to hire a lawyer to negotiate the above.

3. Use part of the money to hire a lawyer to get them to release my things to me, and use the rest to rent an SUV and attach a Uhaul trailer on the back, and basically gas it up and drive my own stuff back home. (Will be difficult for me to get the time off work to do, and will need to get someone to help me)

4. Pay off the back storage balance and use the rest to help me generate income on my own to pay off the move balance.

I do need to add that my things are in their warehouse and they will not let me access it nor can I because it is on some kind of pallet next to other people's things. Basically, they have backed me into a corner.

5. I even thought of moving back home and just saying I changed my mind and getting them to move my things back to whatever place I get back home. Problem is, I am from NYC and whatever money I would save in the moving expenses, I would pay trying to find an apartment! New Yorkers, you know what I mean!

Thanks for all tips.

[sunshine08]

You, indeed are in a large mess. Do you have an attorney for the bankruptcy? If not, have you already filed? Call them see if they will take less, but what were you thinking when you did this? Call the better business bureau. Did you have a contract?? Best of luck!!!!!

[Cmonlottery]

If they can't sell it and it is taking up space in their warehouse it might just be a waiting game. You can hire an attorney but it will probably still be a long time and when they do release your stuff it will be at a most inconvenient time. You might file a complaint with the FTC and see if they can get your stuff released(they might have more leverage if they threaten fines against the company).

Best bet for moving it, just rent a u-haul(How long is the move?).

[HHM]

What is the status of your bankruptcy?

However, you are in a bind here. In most states, a storage business has a "statutory lien" on all property located in their premises up to the value of the past due rent. Statutory liens can only be avoided (in bankruptcy) by the trustee, not the debtor. The statutory lien typcially survives the bankruptcy and your exemptions are of little use because the lien tends to supercedes the exemptions. (its like a secured debt). About all you can do is pay them, or fight them in court.

Also, if you are entitled to this loan refund, why is the trustee not making claim to it?

[FloridaGirl]

What I want to know is this.....if you have a storage unit full of new furniture, how did you manage to keep those things exempt? If they are new, they have to be worth more than your exemption amount for a ch.7. Did you even tell the trustee what the true value was for those items? I'm surprised they didn't make you give up some of the furniture. You are lucky as far as that goes. I think the only thing you can do as far as the storage goes is pay them.

[originalhealer]

I filed BK by myself w/o a lawyer. Like I said above, I am awaiting discharge. To answer the question, "What were you thinking?", I was thinking I needed to move, so I called a mover. Had I known this would happen, I would have sold half of that stuff and rented a UHaul for the rest. But you live and learn.

As far as a contract, you know everyone covers their butts legally these days, but that doesn't mean it isn't negotiable.

As stated above, the move is almost 900 miles.

I can try to report them to the FTC, I can also file a motion to avoid a lien or whatever.

I don't think student loans are affected by bankruptcy, because I am a full-time graduate student and am entitled to them....they are not exactly income. These are federal student loans, not loans through a private company. Also, I will have to pay them back no matter what, because they are non-dischargeable.

I am going to cover my butt by filing a motion to avoid a lien. I am also going to make them an offer. I can only try. If they refuse my offer, I think I will just have to pay the past due storage balance, and come up with a plan B for the move. But they may be open to negotiation.

[HHM]

Like I said above, I don't think you (the debtor) can bring a motion to avoid this particular lien because its probably a "statutory lien" (commonly known as a warehousemans lien), which cannot be avoided by the debtor, it can only be avoided by the bankruptcy trustee. 11 USC 545 only specifies that that "trustee" may avoid statutory liens. In some circumstances the debtor may step into the shoes of the trustee if the trustee abandones a particular action, but I don't think this context is one of them. But anyway...

Good luck.

[originalhealer]

In my state, the personal property exemption is $3,500, the homestead exemption is $5,000 (unused portion can be applied to any property), and a $400 wildcard exemption.

I got a really good deal on new furniture. For example, I only paid about $800 for the dining room table with six chairs.