BK7 creditor wants reaffirm, payment, or surrender

[BCA2009]

You spoke with someone who gets paid to collect money. Everything they tell you is an attemp to scare you into paying them something. There is always the tiniest risk they would try to come and get the items. But listen to everyone on this board with real experience. Nobody wants your used stuff. Don't give them anything.

[itsdavetime]

The purchase at City Furniture was made with two forms of credit. Wells Fargo was only one creditor on the purchase, the other being HSBC. I called the person on the Wells Fargo letter and asked which items Wells Fargo has an interest in. They said since they had the majority of the credit, it would be all items. I explained it couldn't be all items since two credit cards were used. They said they have an interest in everything.

How can that be? They can't have an interest in everything since we didn't use them to pay for everything.

[researchnerd]

I'm in the same situation with Haverty's. To avoid surrender or reaffirm, they wanted payment in full of the amount still owed, which is nearly 100% of the original purchase price, plus 21% interest. We decided that if we're going to get rid of our debt, we want to get rid of all of it. Also, we don't want to pay full price for used furniture (more than that if you include the interest). Even if they do come get the furniture, post-BK we'll be able to afford some new stuff anyway.

Did they specify in your letter what fair market value is? Is there anything you absolutely can't replace?

[ccsjoe]

I'm going to do the same with our almost 4 year old fridge washer & dryer. They can come git'em if they want, no reaff'ing those here!!

[AlmostAmos]

Yes, it is a gamble. It really depends on what you have & how much you want to keep it. If you REALLY don't want to lose it, offer them something. Personally, for almost anything - I would tell them to pound sand - in legal wording of course... ;-)

[itsdavetime]

Tell them you want to surrender the item. They won't do anything about it, they don't want your used furniture.

That's a gamble though, right? Wells Fargo may just come and take it.

[AlmostAmos]

Tell them you want to surrender the item. They won't do anything about it, they don't want your used furniture.

[itsdavetime]

In the middle of a Pro-se CH7 filing, 341 done and discharge objections are due by 9/7/10. Received a letter today from one of the creditors (Wells Fargo) from City Furniture. The say that either a reaffirmation agreement has to be signed, a lump sum payment of fair market value, or surrender of the furniture. Otherwise they will pursue legal remedies which may include filing a motion for relief from the automatic stay.

Any suggestions on how I should proceed?

Thanks