Furniture repo after discharge

[123ABC]

My BK was discharged in Nov 09 and just today I got a letter from American General saying they want my mattress back!!!! My plan is to ignore them. If they really want it they better get a court order and a sheriff out here to pick it up! Glad to see they eventually stopped bothering you. When I lost my job back in 07 I couldnt pay the phone bill so I let the phone line go. At the time I also had a company cell phone. None of the companies have a phone number for me which has been a blessing during this whole mess, so they wont be able to harrass me on the phone.

[debtmonster]

Oop! Sorry Justbroke, didn't mean to pester ya I have to admit I was stunned when we started getting those calls! When I checked the ph# it was for some group in another state..the very 1st call specifically said "we have a pick up order" then from there they'd leave various mssgs, sometimes referring to our atty, acting as if they'd spoken to him and he wanted us to call them! (they made the mistake of just saying the name of our original atty, he had quit the firm and we had another atty assigned to our case, b4 we even had the 341). I just get the feeling they are lying low for awhile and when I get comfortable enough to answer the phone again it will be them sneaking up on me again! Thanks for your input.

I have zero tolerance for that. I simply change the phone # and tell all of my family and friends the new #. I've been doing it for years since I've moved around so much. I hardly ever have a phone # more than a few months to a year or two. I can't deal with the stress from creditors or CA's. My blood pressure is too high for it.

[Martha13]

Oop! Sorry Justbroke, didn't mean to pester ya I have to admit I was stunned when we started getting those calls! When I checked the ph# it was for some group in another state..the very 1st call specifically said "we have a pick up order" then from there they'd leave various mssgs, sometimes referring to our atty, acting as if they'd spoken to him and he wanted us to call them! (they made the mistake of just saying the name of our original atty, he had quit the firm and we had another atty assigned to our case, b4 we even had the 341). I just get the feeling they are lying low for awhile and when I get comfortable enough to answer the phone again it will be them sneaking up on me again! Thanks for your input.

[justbroke]

justbroke--does that mean someone could say "I sold the old crapatola for $50...here's the proceeds, now go away" and be off the hook?

Sometimes I should just leave my mouth shut because it just causes more questions. (Nothing about you asking me one... just me being hyper-technical.)

So, in the hyper-technical sense, yes. However, they would still have recourse to sue you for the deficiency. Then, add on that you filed Bankruptcy... that absolved you of the deficiency, so... they couldn't do that on a Bankrupt person.

I can't believe, in your case, they kept pestering you for the furniture. However, American General is one of those "local" loan sharks (as I call them). They are not too unlike CitiFinancial. The purposefully have offices all over the place so that they can bother you! They are local, and part of their job is to make those dunning calls.

[Martha13]

Actually, if you really read the fine print of those "purchase money security interest" (PMSI) type cardholder agreements, there is also a clause which states that you will surrender all proceeds of any sale or from any use of the item.

justbroke--does that mean someone could say "I sold the old crapatola for $50...here's the proceeds, now go away" and be off the hook?

I had furniture purchased at American Furniture and financed through them at American General Finance. They did not file anything, and I did not return anything, but for about 4 months after discharge I got weekly phone calls from some outfit saying they were calling about the furniture, that they had a "pick-up" order for it, etc. They also sent one letter, not a threatening one, just a "we've been trying to reach you and can't, please call back" letter. We never answered their calls nor returned their messages..they sounded pretty testy in the end, but we haven't heard from them in a couple of months. I don't know if they'll start back up again or what. I NEVER answer my phone!

[justbroke]

So what happens if you tell them you sold the TV or furniture long ago?

Did you?

Actually, if you really read the fine print of those "purchase money security interest" (PMSI) type cardholder agreements, there is also a clause which states that you will surrender all proceeds of any sale or from any use of the item.

Reality, they generally will go away and leave you alone.

[debtmonster]

Just to clarify some things. Liens survive bankruptcy (with very few exceptions). When you purchase items on "store" branded cards (like Rooms To Go, Best Buy, Ethan's Furniture, etc.), you grant a "purchase money security interest" in the items you buy -- this creates a lien.

So what happens if you tell them you sold the TV or furniture long ago?

[justbroke]

Just to clarify some things. Liens survive bankruptcy (with very few exceptions). When you purchase items on "store" branded cards (like Rooms To Go, Best Buy, Ethan's Furniture, etc.), you grant a "purchase money security interest" in the items you buy -- this creates a lien.

Regardless of any discharge, those companies, unless they filed a claim as an unsecured creditor, still have their lien.

Now that I wrote that... here's the reality. Most of them just move on and don't ever ask for the property back. Best Buy seems to be the only one that wants a 5 year old computer worth $20. There's a poster on here that has a $40K piano that Yamaha Credit never came to get.

It can be expensive for these companies to retrieve their property (yes their property). The ones that do send letters, send one semi-threatening letter to get you to turn over the property. What they are avoiding, is taking the appropriate legal steps to get a Court Order to recover the property.

As a public service reminder, companies like American Express, VISA, MasterCard, Discover, do not have such a clause in the cardholder agreements, so don't have liens on your purchases.

[doingpoorly]

I heard Sears, Discover and Amex are not like that. They like to take stuff back just out of spite. My step-father drives trash trucks and has seen tons of like-new stuff thrown in the dump by Sears. They'd rather throw it in the trash than know that you got it free.

I knew Sears will sometimes come after you for their items but AMEX and DISCOVER....I didn't think they had that ability. How could they have interest in the things you buy using their card? Do you think they will want back my dinner at Chili's......I will give it to them!!!!

[bnkrptinva]

EA? Electronic Arts? Do they want software or games back?

"E.A. Sports... It's in the Game!"

LOL, Ethan Allen.

I wouldn't much care about software or games, but furniture my family uses for the family meal, that's another story.

[debtmonster]

Had my 341 this morning. Thank god GE nor EA showed up. I think it's going to be okay, my family will not end up eating on the floor after all. : )

EA? Electronic Arts? Do they want software or games back?

"E.A. Sports... It's in the Game!"

[bnkrptinva]

Had my 341 this morning. Thank god GE nor EA showed up. I think it's going to be okay, my family will not end up eating on the floor after all. : )

[debtmonster]

I heard Sears, Discover and Amex are not like that. They like to take stuff back just out of spite. My step-father drives trash trucks and has seen tons of like-new stuff thrown in the dump by Sears. They'd rather throw it in the trash than know that you got it free.

[Stilltheone]

I had a loan out on furniture from American General. We purchased it barely 90 days prior to filing. They didn't come after my stuff. It was already used. They won't come after it.

[debtmonster]

We are doing the Dave Ramsey way with our finances now. Ever read one of his books? Pretty good advise. We too decided not to buy anything on credit ever again including cars. We either save up for it or we do not need it! I have seen those smart cars around town here. They are tiny!

But imagine if gas goes up to $4.25/gallon! It's only $30 to fill up!

I rented one and it was a blast. I want to buy one now. The prices vary widely. A new one can be very expensive but a slightly used one can save you anywhere from $3,000 to $7,000.