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Being threatened with lawsuit/repossession by Nebraska Furniture Mart

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    Being threatened with lawsuit/repossession by Nebraska Furniture Mart

    I am new here, but this looked like the place to get some very good answers, so here goes.....We filed a Chapter 7 and just received our discharge. We were going to file a Chapter 13 until I lost my job. Just prior to losing my job we purchased one item on our NFM card. We were (very mistakenly as I now know) under the assumption that as it was a secured debt we could reaffirm and just contine to pay it back, no problems. We only thought you couldn't purchase something within 90 days of filing if it was going to be included in the bankruptcy. So, we stated in our intentions that we wanted to reaffirm the NFM card and the mortgage. Something else we didn't know, it isn't up to us what gets reaffirmed. The reaffirmation was never received by our attorney. I still don't know how reaffirmation works at this point. As we had recently made a purchase, I have continued to pay NFM every month, on time, no problems. Until last week.

    I received a letter from NFM that they are going to get a "right to cure" and come take everything back, apparently everything we have ever purchased from them that still remains as a balance on the card. I called, explained my confusion and the legal assistant was decent enough. She said they wouldn't proceed any further if we would sign a voluntary repayment agreement. To which I replied, okay, but we are still making payments and intend to do so, our history should speak for itself. I guess that doesn't matter.

    I received the voluntary repay agreement, which has to be notarized, and contacted my attorney. He stated we didn't have to sign it, that it wasn't legally binding anyhow. Also, that we don't have to pay them a cent if we don't want to, but it's our decision. He also stated that they lost a lot of ground when they didn't object to the bankruptcy, especially since we had made a recent purchase. He said they have never collected their "secured property" from any of his clients, no matter how much they threaten to do so, but there is a first time for everything. He did feel that as we are and have been paying on the account that he would be very surprised to see them actually file suit.

    I called NFM back, explained that our attorney doesn't recommend our signing this paper. She informed me that my attorney is a scumbag and knows his way around the system and she is coming after us for all they are worth. I kind of calmly explained to her that the attorney I chose at random from the phone book isn't my fault and I will not be attacked for that decision. Also, we are going to continue to pay, as we feel it is only right. She didn't care, coming to get our stuff, etc. I finally talked her down to, if we sign the agreement and never, ever til the end of time miss a payment, and at the bottom of the repayment agreement I have to write "in my own writing" that my attorney, John Doe, specifically advised me not to sign this. Holy Buckets, batman, what exactly are we to do here? After her scathing review of my attorney I am almost afraid to call him and explain what she said because I feel that if they come after us, it won't have anything to do with us, but everything to do with the fact that apparently my attorney has created loads of enemies at NFM and they hate him and would love to cream him and we might be the unlucky casualties. HELP!!!!!!!!!!!!


    ---Sorry for the novel, just wanted to be very clear about every circumstance here.....

    #2
    Nothing more than typical collection efforts. Listen to your attorney and tell the cc company to pound sand.....
    All information contained in this post is for informational and amusement purposes only.
    Bankruptcy is a process, not an event.......

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      #3
      Originally posted by frogger View Post
      Nothing more than typical collection efforts. Listen to your attorney and tell the cc company to pound sand.....
      Agree!! Tell them to come and pick up the stuff. The furniture is worth only pennies on the dollar. They will never bother to come and get it.
      Filed Chap.7: 08-21-06
      341: 09-18-06
      Discharge: 11-29-06
      Closed: 12-04-06

      Comment


        #4
        The collectors are always nice until you don't do what they want you to. Then the collectors always turn nasty. Don't do something just because the collector tells you to. You have to remember, they do not represent you, their goal only to collect what is owed to them. By signing some agreement (legitimate or not) only secures their interests. Furthermore, don't worry about her opinion of your attorney. I wouldn't be surprised if she's never heard of him. She's playing mind games with you and I'm sorry to say it's working.

        Moving forward what took place in the course of your bankruptcy is what's important. Since the charges occurred prior to filing and they didn't object to the BK is very favorable on your part. Don't worry about what she tells you, your attorney is the one that should guide you.

        If, after everything is said and done, they insist on picking up the furniture, let them come. Just make sure you use the furniture for fire wood first... oops. Hope they have insurance on it.
        Chapter 7 filed December 11, 2009, 341 Meeting held on January 7, 2010
        Deadline to File a Complaint: March 8, 2010

        Discharged and Closed March 11, 2010

        Comment


          #5
          This is very similar to what my girlfriend went through on her payment of a Dell computer. Our attorney said if Dell wants it back that they have to either send a delivery person or a pre-paid shipping box. They never did.

          Depending on how new the furniture and items are, it is probably much easier for the furniture company to simply write-off the furniture then to send people to your house to remove all of it (especially since it's used and not worth nearly what you paid). It's about calling their bluff. Very likely they are just trying to scare you into paying them back.

          You could try calling their bluff and you may lose the furniture, or you could try to work with them. Your attorney probably knows best here.

          Comment


            #6
            I think I needed to hear that. We will continue to pay monthly as we deem necessary for our consciences. I just couldn't believe they were taking such strong action while we are still paying. I pointed out to them that I have been under no legal obligation to repay them for over 3 months now and yet I have continued to pay them, so why are they coming after us? Gracious, what a deal!! I wasn't sure what was legitimate from them or not. Can they call us, or is it limited to letters at this point? Again, thank you!

            Comment


              #7
              I now understand why 30 second negative political TV commercials are affective.

              [QUOTE=Frustrated19;478868]I am new here, but this looked like the place to get some very good answers, so here goes.....We filed a Chapter 7 and just received our discharge. We were going to file a Chapter 13 until I lost my job. Just prior to losing my job we purchased one item on our NFM card. We were (very mistakenly as I now know) under the assumption that as it was a secured debt we could reaffirm and just contine to pay it back, no problems. We only thought you couldn't purchase something within 90 days of filing if it was going to be included in the bankruptcy. So, we stated in our intentions that we wanted to reaffirm the NFM card and the mortgage. Something else we didn't know, it isn't up to us what gets reaffirmed. The reaffirmation was never received by our attorney. I still don't know how reaffirmation works at this point. As we had recently made a purchase, I have continued to pay NFM every month, on time, no problems. Until last week.

              Comment


                #8
                They can't just show up with a truck and enter your home. They need to get a court order and follow the law. They will never do this. I would not even bother to continue to send payments at all. The debt was discharged. They are out of luck period!
                Filed Chap.7: 08-21-06
                341: 09-18-06
                Discharge: 11-29-06
                Closed: 12-04-06

                Comment


                  #9
                  Originally posted by Frustrated19 View Post
                  Can they call us, or is it limited to letters at this point?
                  They can call or write, but cannot ask for payment. Period. They can make arrangements to pick up the merch. That's it.

                  You are encouraging them by paying them.
                  No Asset 7 closed 11/09

                  Comment


                    #10
                    1) QUIT talking to them
                    2) If they do manage to get in touch with you, tell them you no longer have the furniture or your cat pissed all over it
                    3) Don't offer them another cent
                    4) Do not sign any agreements, reaffirmations, etc.
                    5) Repeat as necessary
                    Stopped paying CCs 1/10 | Stopped paying mortgages 2/10 | Interviewed attorneys 3/10-5/10 | Retained attorney 5/14/10 | Delivered paperwork to attorney 6/17/10 | Filed Ch7 7/9/10 | 341 8/16/10 | Objection Deadline 10/15/10 | DISCHARGED 10/20/10

                    Comment


                      #11
                      If this debt was IIB, they are not allowed to collect from you on it, EVER. Their letter to you about "attempt to cure" blatantly violates the law. They cannot legally sue you to get their money. The only thing they can do is repo the furniture if it secured the debt, but they don't want it so they are trying to scare you into paying it off in full. I know, you were paying anyway...this is how collectors operate. It is a scare tactic and nothing more.

                      Ditto what Chowder and AlmostAmos said. This debt was discharged in your BK and they did not object during their legal time to do so -- now they are SOL. I know you want to pay this off to ease your conscience, even though the debt was legally discharged, but at this point I'd say it's just making matters worse. They are using your honest intentions against you. Don't talk to them, don't sign any payment agreements, and don't pay them another penny.

                      FWIW I'm in the middle of fighting an Adversary Procedure filed by a furniture store. Like yours, they are pissed because we didn't reaffirm, and they requested that their portion of the debt not be discharged. Plus they want me to pay their attorney and court fees. As much of a PITA as this AP is, this is what your furniture lender should have done if they wanted to pursue this. Instead they are taking an illegal way around it, which is pretty pathetic considering that you were still paying them.
                      Last edited by researchnerd; 12-06-2010, 02:15 PM.
                      DH laid off 3/08 | Last mortgage payment 12/09 | Filed Ch13 5/10 | Converted to Ch7 7/10 | 341 held 8/10 | AP filed by secured creditor 10/10 | Ch7 discharged & closed 11/10 | Foreclosure 10/2011

                      Comment


                        #12
                        Originally posted by Frustrated19 View Post
                        He said they have never collected their "secured property" from any of his clients, no matter how much they threaten to do so, but there is a first time for everything.
                        This isn't true. Sometimes there isn't a first time. The sun will never grow legs, tap dance and sing "Jingle Bells".

                        I don't think they ever had any intention of coming for your stuff. Why threaten someone who is still making payments? If you think about it, it doesn't even make sense. Unless their left claw didn't know what the right claw was doing.

                        I bet that was their standard threatmail that they send everyone post-bk hoping to squeeze out a few pennies. They didn't realize you'd been paying all along. As others have already said, they can't "come after you for all you're worth" because all they can do is get the stuff. But first they're going to need to hire some guys and some trucks and some warehouse space and so on. They'd spend more getting your stuff than they could ever get for your stuff. They're not coming and they never were.

                        I would stop paying and start putting that money away for unexpected medical bills, or car repairs. You've already "paid" for the stuff in terms of your tanked credit. Don't pay twice.

                        edit to add: this link takes you to another thread on repo with the same company & in this thread, the lawyer had never seen them repo stuff in all his 20 years of practice.

                        Last edited by debee; 12-06-2010, 03:22 PM. Reason: to add link
                        There are two secrets for success in life:
                        1.) Never tell everything you know.

                        Comment


                          #13
                          Thank you all, very much!!! I don't know my way around this situation and needed some clarity.

                          Comment


                            #14
                            Frustrated19 you are throwing good money away by continuing to pay these collectors. You have a fresh start, save that money.

                            Comment


                              #15
                              Hi frustrated,

                              We will continue to pay monthly as we deem necessary for our consciences.
                              I just couldn't believe they were taking such strong action while we are still paying.


                              They have shown what they think of you, loyal customer paying when you didn't have to....

                              ...might be time to consider your conscience paid and politely point out that their collection practices are in violation of federal BK law and the Fair Debt Collection Practices Act and just to be nice you aren't going to sue for damages.

                              Seriously though, please do not sign anything, pay anything, or let their behavior go unchecked, it only encourages them to continue preying on people. Consider standing up to them a public service!

                              Tom in Colo
                              Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

                              Comment

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