BK7 creditor wants reaffirm, payment, or surrender

[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

[AlmostAmos]

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

[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]

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... ;-)

[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!!

[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?

[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.

[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.

[bigtim6656]

I would agree, my cousin is thinking about filing, her new husband has good credit and hers is worst then mine. She has a dell she had been paying on fror 2 years and still owes them 1800 bucks. She told me she was worried the would take it since she has paid them 1500 bucks and owe 1800. I ask her why not just give it back. She told me she needed it and would have to pay the 1800 bucks so she could keep it Right now the same computer (well same setup) from dell or hp is 750 bucks, I told HER GIVE IT BACK AND BUY A NEW ONE.

I need a new one for school and thought about the dell payments but figured the bk trustee would not like that 3 or 4 weeks before filing.

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!!

[HHM]

By the letter of the law, Wells Fargo is correct, when it comes to personal property items, your only choice is to redeem (pay fair market value), reaffirm, or surrender. 521(a)(6); and you must do one of those three within 45 days of the first meeting of creditors.

However, as a practical matter, it is unlikely that Wells Fargo will actually go to the trouble to repossess the furniture. The would need to go to court, get a writ of replevin (which gives them the right to come on to your property) and get the Sheriff involved to actually get the furniture. But, it is a risk.

[itsdavetime]

So, should I just ignore the letter, or actually call and tell them that I want to surrender the furniture?

[Fallonedward]

We got a new Central A/C installed from Home Depot a year ago. Will they demand that we surrender it, if so I'll tell them to come and get it as its not worth it to me to save it

[ccsjoe]

For whatever it's worth, my vote would be to ignore unless they call you. Then you can tell them they are welcome to come get the furniture provided they follow due process. You will know if they don't file an objection that it's discharged and you're free and clear.

[ccsjoe]

I understand this is a tough spot and there is always the possibility that someone will say yes, we will come a get it. However, think about the logic. The retailers you purchased the items from already got paid by the financing company you took out the credit with (unless it was 100% store credit). The odds that banks and financial institutions would want to try and sell your now used goods for a fraction of the initial cost, plus filing fees, sheriff, travel, transportation, etc....I think unless it's a major very recent purchase, you're ok.

[bigtim6656]

When I was a kid a friend of mine's parants outfitted their house with all new costly stuff from a in house finance store like rent a center but financing not renting. 6 months later his dad got sick and lost his job and they filed, lost their house, cars, boat, and when they rented a small house they had to much furniture because the company would not take it back and they keep it. I am guessing they wrote it off and forgot about it.

I understand this is a tough spot and there is always the possibility that someone will say yes, we will come a get it. However, think about the logic. The retailers you purchased the items from already got paid by the financing company you took out the credit with (unless it was 100% store credit). The odds that banks and financial institutions would want to try and sell your now used goods for a fraction of the initial cost, plus filing fees, sheriff, travel, transportation, etc....I think unless it's a major very recent purchase, you're ok.