Will they really repo/sue?

[mommyto3]

We financed a couch and recliner (not really expensive or anything) back in May 05 from a electronics/aplliance/etc place (but not rent to own). We quit making payments about 2 months ago, but we are not planning on filing BK until March of 07. I received a letter today from an attourney saying we have 10 days to respond, or they might file a lawsuit to collect unpaid balance, and if we are a TX resident (which we are),then they may "seek to sequester (repossess) the merchendise.

Then they go on to say we would have to pay all court costs and all that stuff. It says we can reduce the amount by voluntarily returning the stuff.

Is this a typical threatening "We want our money NOW" type of letter, or is it a very serious type of thing since it's from an attourney? I am broke, obviously, that's why we are filing BK, but I am tempted to somehow come up with the money just so I can make a payment! amazing how intimidating they can be. So should I ignore it? repsond and tell them I can't pay? Will they really come take my 1 year old couch and chair? I NEED that couch and chair! I have 3 kids for goodness sakes.

TIA

[edwards2]

There is a good possibility they will but I am sure they would rather have you make a payment. Just out of curiosity why did you stop paying now if you are not filing BK until next year. This is only April of 2006. There is absolutely no way you can not pay and expect them to do nothing. Typically when you get a letter from an attorney it is a threat and it works. The attorney's law firm represents the company where you bought your furniture. You need to decide if you want to keep it. Legally they come and get it. And by the way if they sue you you will be responsible for all of the court costs and that can get expensive. Not trying to scare you; I understand what it means like to be broke.

[SinkingFast]

During our Consult yesterday, I asked if we would see reps from any of our Creditors at the 341. We were told NO. All the debt we're filing against is big bank CC's.

Typically the only Creditors that do show up at 341's are local Creditors. The small, local guys, who can't afford to take the hit like the big lenders are the most saavy about Collection and Adversarials with BK filers here.

I'd suggest you definitely call the store. Explain your situation. Have a plan for when you can afford to give them some money. Try to avoid a law suit and keep yourself out of Court with the company.

If they do sue or turn you over to collections, it will cost you way more. And they could also garnish your wages.

[mommyto3]

Thanks for the replies!

The reason why we are filing later is a long story. In a nutshell, less than 6 months ago, we were doing fine, we moved into a new home, bought new things,including some things we shouldn't have. We were making above payments on our CCs and payment plans...a LOT of things happened that were not our fault, and we are now WAAAY over our heads and don't see a way out except BK.So,we are trying to wait for another year, making it about 1.5 years since the charges, so it doesn't look like we were trying to abuse the system and charge up a storm, then file BK. Because that is NOT the case. We just did some incredibly stupid, lesson-learning things.

I will definitely call the store and make arrangements. I just hate this whole thing. The shame of it all,but I'm sure you all know how that feels!

And I don't think they can garnish wages because I am in TX. I don't think that's an option for them. I could be very wrong though, I am new at this.

Thanks again for the help

[fellowpoorman]

My belief is that this is the standard threat, about paying court costs etc. Will they pursue?? Depends on what it costs them to pursue vs. what you owe, Is it cheaper to write off or face a customer going bankrupt, in which case they lose, repossess well so what its not the end of the world, but will they spend $$ to do it? As far as the attny thing, it may not be an attny at all just part of the attempt to get your $$ which you can't afford to give. Pay the bills that care first.

[FilingOnMyOwn]

I'd just ignore the crap and file. Its only a couch and chair really, no big deal. You don't need a couch or chair to drive to work. After filing, they may want it back, or you might get to keep it. If they want it back, get something secondhand, or off the curb for goodness sakes and put a slip cover on it. The kids won't care or know the difference.

[edwards2]

Just curious mommyto3 - what is the furniture worth? I tend to agree with filingonmyown - it is just furniture - not that you dont need it but obviously a car is far more important. Some companies do use the scare tactic ala attorney to coerce people into paying; maybe that is what they are doing. Regardless, sorry you are having such a hard time. We have all been there...done that. You dont owe us an explanation - we are here to help and support you. No one is judging you. It is a very emotional time - no apologies necessary at all. Keep us posted.

[mommyto3]

I want to say thanks for responding. I truly appreciate the help!

The furniture was originally like $800, but because of the insanely high interest rate, all of my payments basically went to interest first.

However, something that I don't understand: We got the letter for the attorney, it said deliquent amount is $50.96 and the "Accelerated Payoff" is $730.76.

The very next day after posting to this forum,I got a letter from the actual company that said "Blah blah blah..lose a valued customer...Past due is $50.96 and the balance is $1041.42".

I am guessing that the $730 is just a way to pay it and get it cleared, and the $1041 is from the company trying to get ALL of their money and fees and interest...

Like I said, it's a basic ol couch and chair, nothing fancy. The only reason why i am so concerned with it is that is the ONLY thing that will change with BK. Our house has a teeeeeny tiny amount of equity by then, all of our assets are safe according to the TX exemptions. (We get exemptions for DH and me, but we don't even need that much because we don't have anything!House,1 car,furniture,kids' toys...that's it)Anyway, that would be the only thing that would even give the kids a hint of what's going on. I want this to be as painless as possible for them, and I really don't want them to know AT ALL. They are still really little, my oldest is almost 5,but she's smart...someone coming to get our perfectly fine couch,and us being able to afford nothing to replace it, or at best something way worse than what we had,will definitely make her ask some questions. It's not about I don't want to lose anything, I am truly thinking about my kids. I just do not want them to have to suffer for our mistakes.

I guess I am going to call and hopefully they can lower the payments somehow.

Thanks again everyone.

[Minnymouth]

Your furniture is NOW considered Used.... so you don't have to worry much about anybody coming after it.......
And the company will not sue over that small amount....will cost them too much....
Make temp payments if it makes you feel better, until you file bankruptcy.... then include the balance in your bankruptcy. Me, I wouldn't make any more payments on it if I was going to file BK....

Suggestion around the 5 year old - don't mention the word bankruptcy very often to the point that she WANTS to know what the word means and asks somebody else....

Just a thought,

Minny

[fellowpoorman]

Hey, no matter who you are dealing with the fact is they all want as much of yor $$$ as they can get, they don't care if your kids ate today. How I pray for for the day we all can keep and do what we want with our earnings, no more credit.

[SinkingFast]

We all come here trying to cling to something. For you it's a couch and chair. For us it was our truck. For other's it's their house.

It's not the thing we are trying to cling to,............... It's the dignity that goes with that thing once it's lost.

Loosing a thing doesn't hurt so much, unless it's a treasured item that was handed down to you by a grandparent or parent. Something of you heritage to pass on to generations to come.

When we loose things important in our daily life, a segment of our peel get's pulled back for all to see our vulnerability. You loose your living room furniture and you are embarrassed about how you'll live. What people will think when they come to your house and you have no where to offer them to sit to watch the game or chat.

We lost our truck. Now we have to constantly juggle schedules so I can get a car to do the things I need to do. We have to take 2 vehicles if the whole family is going somewhere together, cause now we can't all fit into one.

People loose their homes and they loose not only the place the call home, but they loose their identity as a member of the community.

Sometimes you just gotta suck it up, and decide in your own mind that you have to let go. Let the chips fall where they may, and work from there. Keep positive thoughts in your mind that this will end. This HAS to end.

We, all of us, each and every one, are people of dignity and worth going thru a rough patch on the road of life. What does not kill us makes us stronger.

[Minnymouth]

You said it all in a nutshell, SinkingFast...............

Minny