Here is one for the pros

[indigoblue]

I may have posted before about continuing collection activity on our central air/heat unit with American General. Since our discharge last week, they call our attorney's secretary to find out when we would voluntarily start paying again. Now the manager just called me and wanted to know that he could not adjust our pre-bk payments, but if we didn't pay our balance would just keep rising. Now I know that a partially secured item such as this is iffy, but I don't want them to repo the outside half of the unit (repo was not mentioned, just start paying). Help, please.

[kornellred]

When you say "discharge", are you saying Chapter 7 bankruptcy discharge? If you are, then you do not owe anything. Send them some Monopoly money and a copy of the discharge, and maybe throw in a little bit of the FDCPA. And tell them that they are liable to be sued if collection efforts do not cease.

[indigoblue]

Yes, Chapter 7 discharge. I was only worried about it being repo'able.

[2manybills]

Was this debt listed as a "secured" or "unsecured" debt on your schedules?

[indigoblue]

actually the manager of the agency today told me that he really didn't have anything to repo. So now I'm at a quandry. There was no lien filed before the bk, but I was thinking that it was secured, but I was also led to believe that once it is installed, if no lien is filed then it becomes part of the home and therefore unattachable.

[Pizza]

That's a tough one, first because it's attached to the house and second because it is a living necessity in month of extreme cold or heat. You will have to keep it or replace it BK or not, so if you can keep the payments up, that's what I would do. Otherwise, you'll have to come up with the money for another one post-BK without credit to help you. Judging by the size of your house, window units or furnaces MAY be cheeaper than the payments, but you don't want to get something that is going to run your electric bill up either.

I replaced my central unit (old house, undersize unit) with window units and furnaces a couple of years ago and the electric bill was cut in half, but my house is 2,000 sq ft and we don't have to heat and cool all the rooms all at once.

[2Bshinyandnew]

What does the original loan docs say?
How much is the balance?
How old is the unit?

[indigoblue]

I had every intention of paying, but DH lost his job and just got another one that necessitated a 400 mile move. Although we still own the house the unit was put in, we are not living in it. The loan paperwork is still in the filebox at our old home, I won't be able to look at it until we get another load next weekend.

[music12]

i don't see how they would physically remove anything. the outside half of the unit? wouldn't that leave the place in a very unsafe condition? in which case do they really want the liability if somebody gets hurt? and does the outside half of the unit have any retail value??? they can't sell half a unit!!

you worry too much. this is a simple case of a violation of your discharge, especially since they are seeking payment and telling you there is no repo. just tell them you will file for contempt.

[MomIcantFindmy]

Music is correct. Don't worry. This is a HUGE violation of your discharge. If they call you politely tell them you are recording the call (whether you are or not) as you are seeing your attorney to have them sanctioned in court for violation of the discharge order.

They will stop calling. If they are going to repo anything or attempt collection it would go through court first. If you see someone taking something off your house that is stealing and they better have a court order (which they cannot get due to the discharge) or I would call the cops and have them arrested.

I had one company that would not leave us alone after discharge and I found a form letter on this site (under the letters section). I sent them a copy of the discharge paperwork and a "nasty" letter explaining their and my rights to them. I never heard from them again...I highly recommend that tactic!!

[indigoblue]

Thanks so much for all the advice.