Reaffermation agreement question

[jeff6898]

I was wondering if anybody knew. If I sign a reaffermation agreement would I have to catch up anything past due? Can I just start making regular payments again? Also if I just start making regular payments will I keep being reported as 30 days past due since that is what I was before I filed BK? I just don't ant any negative reporting showing after BK. Badcock wants to work out a reaffermation on items I have instead of taking them back.

[ValleYum]

I wouldn't sign a reaffirmation agreement on furniture, appliances or electronics from Badcock.

What kind items are you talking about here? I would definitely NOT reaffirm the debt but if you are really worried they will come get your stuff and it is worth it, offer them a settlement on the balance - like a couple of hundred bucks.

Let them come get your USED stuff -it's likely a bluff on their part because where would Badcock be storing all of this used furniture and stuff?? Especially if it is a bed or sofa or chair - with the bedbug scares they won't be taking a risk.

What did your lawyer say about signing it???

[jeff6898]

Well the balance is around $550 I have a mattress, a tv, portable dvd player, microwave, window air unit and a vacuum. Lawyer thinks I should actually sign agreement. If I know they will report on time payments from here on out it I am guessing helping my rebuild after bk? That would be a positive. I don't always think straight though so thats why I ask for opinions

I wouldn't sign a reaffirmation agreement on furniture, appliances or electronics from Badcock.

What kind items are you talking about here? I would definitely NOT reaffirm the debt but if you are really worried they will come get your stuff and it is worth it, offer them a settlement on the balance - like a couple of hundred bucks.

Let them come get your USED stuff -it's likely a bluff on their part because where would Badcock be storing all of this used furniture and stuff?? Especially if it is a bed or sofa or chair - with the bedbug scares they won't be taking a risk.

What did your lawyer say about signing it???

[ValleYum]

Well, you pay your attorney to for his advice. Reaffirming this debt, if you pay it on time and in full will help your credit if Badcock reports to all 3 credit bureaus.

My response was based on reading here and on other sites about many, many other folks who were asked to reaffirm for items like yours and they were told to either offer pennies on the dollars settlement or tell them to come get the stuff. I have never read of any company (other than a rental place) coming to get a used mattress and used appliances - they would only be able to sell it for pennies on the dollar or donate it but they would also likely have to pay to store it and pay to send someone to pick it up...

Only you can make that call. Hopefully other forum members will post here with their thoughts for you, too!

Good luck!!

[malf1204]

I would not sign a reaffirmation agreement. Your bedding is useless to them. They cannot resell used bedding. The other items are not worth much used. The creditor would have to send someone to get them and then try and resell them. That would cost them hundreds of dollars. I would offer them $100 to settle and keep all items. There is no guarantee that they will positively report the tradeline if you reaffirm and it is not going to help your credit much if they do. You declared BK your credit is wrecked.

[btbeme]

They are under no obligation to report you in any positive manner after BK, no matter what. Under NO circumstances would I ever suggest reaffirming any consumer products. A car that is close to being paid off - maybe. A house - maybe, but under some very specific circumstances. A bed, TV, stereo system, etc - no way, no how. Period.

Companies like this so rarely actually do the real paperwork that is necessary to reclaim goods it is laughable. Tell them to go whiz up a rope; or, if they want their stuff, to come get it - it is in the front yard and never mind the cat pee, because the rain is washing it off pretty well.

No settlement, no reaffirmation, no communication after telling them to go away unless they have a Writ of Replevin. And I am completely baffled as to why an attorney would advise otherwise. Telling you they will help you rebuild your credit is a bald-faced lie. You can do that on your own just fine, thanks.

[SMinGA2]

If you don't 'reaffirm' they can't just show up at your door one day and demand the items. They would need to file certain requirements with the local court, I believe its called a writ of replevin. And have the sheriff accompany them with proper paperwork. Meaning it would cost them $. $ for filing the writ, $ for legal counsel on how to do so, $ to pay any associated fees to the sheriff, and $ for the truck/driver to go get the stuff. HIGHLY unlikely.

Not to mention its also unlikely that the items are actually securing the loan/debt. Are there proper liens filed? Probably not. Which means in the eye of the bankruptcy court, its unsecured debt and the creditor has no valid claim to the stuff. Even if there were liens, can they document and show which items were paid off and which ones were not? (They'd have a stronger case if you'd purchased 1 item and not finished paying for it.)

Last but not least - if this were a valid secured debt, and you reaffirmed it when behind, then there would be nothing to stop them from coming to repo it as soon as the automatic stay lifted. Say you were talking about a car loan... You'd end up owing the balance (after auction sale, fees) after bankruptcy. Reaffirming something you're past due on is dangerous...

[jeff6898]

I just got back from thje attorney's office this morning. I told him I do not think I am going to sign the agreemnt. I said the only way I would is if they would sign a agrrment taking rhe past due off my report, stat this like a fresh loan and report positive my payments. He said they will not do that which I really did not think they would. I asked him about negotiating a pay off. He saaid it would be near the full amount I owe. My lawyer told me on secured property the ball is in the crediotors court and I have no negotiating power at all. So I said guess we afre done then I will not sign. He said ok they will probably be by for there stuff pretty quick once they have the stay lifted. Oh well guess I lost on this one. LIve and learn.

[SMinGA2]

I still disagree with your attorney. IF anyone shows up - ask to see documentation showing their right to claim the items.

I'll bet you a nickel this is the end of it.

[ess]

I wouldn't reaffirm. Unless you just got this furniture within the past couple of months or so I seriously doubt they will come take the furniture. These places are insured for things like this they won't be taking a loss. The only thing I've ever seen that had to be returned were car tires the person purchased a month before filing. It's my understanding you don't reaffirm anything that you are not up to date on.

[btbeme]

My lawyer told me on secured property the ball is in the crediotors court and I have no negotiating power at all.

Actually, you hold the trump card here - a Ch 7 discharge. Until your case is closed and discharged, they have no legal means to do anything, period. Afterwards, they need a Writ of Replevin and all the other (expensive) necessities to come and get anything.

Your fear is exactly what they are counting on. Your attorney's enthusiasm for doing something very, um, stupid (in my opinion) is troublesome.

[jeff6898]

The newest item I got from the is about 6-7 months ago.That was the portable dvd player for my 4 year old which is pretty messed up now.

I wouldn't reaffirm. Unless you just got this furniture within the past couple of months or so I seriously doubt they will come take the furniture. These places are insured for things like this they won't be taking a loss. The only thing I've ever seen that had to be returned were car tires the person purchased a month before filing. It's my understanding you don't reaffirm anything that you are not up to date on.

[bcohen]

I just got back from the attorney's office this morning....I asked him about negotiating a pay off. He said it would be near the full amount I owe. My lawyer told me on secured property the ball is in the crediotors court and I have no negotiating power at all. So I said guess we are done then I will not sign. He said ok they will probably be by for there stuff pretty quick once they have the stay lifted. Oh well guess I lost on this one. Live and learn.

Does your attorney work for you, or the creditors? The reason I have to ask is because the advice he is giving is contrary to YOUR interests, and plays into the interests of your creditors. Even assuming that the creditor had a bona fide lien on the property (which I do not believe is correct), you still have leverage to negotiate a payoff, especially to the extent that reposessing the collateral will net less than the proposed payoff. Used consumer goods are difficult--if not impossible--to sell, and adding in the costs of reposessing them means that the creditor would lose hundreds of dollars on this proposed repo. It's not going to happen. A better attorney would have advised you to offer a settlement of $100 to $150 max, and most likely the creditor would have happily accepted such a settlement.

[jeff6898]

Darn wish now I had a differant attorney. I wonder if I can offer a settlement offer on my own? He seems not to want to be bothered with doing anything else since after the 341. HIs only options I have according to him are 1. pay in full what is owed 2. sign reaffirmation or 3. give them the items back. He claims the court would make me pay what I owed and would not let me offer to pay less. He seemed great right up until the 341 ended.

Does your attorney work for you, or the creditors? The reason I have to ask is because the advice he is giving is contrary to YOUR interests, and plays into the interests of your creditors. Even assuming that the creditor had a bona fide lien on the property (which I do not believe is correct), you still have leverage to negotiate a payoff, especially to the extent that reposessing the collateral will net less than the proposed payoff. Used consumer goods are difficult--if not impossible--to sell, and adding in the costs of reposessing them means that the creditor would lose hundreds of dollars on this proposed repo. It's not going to happen. A better attorney would have advised you to offer a settlement of $100 to $150 max, and most likely the creditor would have happily accepted such a settlement.

[btbeme]

I wonder if I can offer a settlement offer on my own? ... He claims the court would make me pay what I owed and would not let me offer to pay less.

Do nothing. The BK court will not make you do anything unless they file a claim with the Trustee, and that is highly unlikely. Do nothing. Nothing. Wait until after discharge, then see if they come after you with a Writ of Replevin. No settlement. Nothing.