Item I owed on was sold...

[Scooprack]

I had a wedding ring purchased for approx $5000 and owed around $3500. The collector from the jewelry store (big name) said if my husband and I could not pay the remainder that we needed to get what we could for it on eBay so we could pay them what ever we got for it. Well, I ended up selling it on Craigs list for under $1000 (I had taken it to a few pawn shops who were only going to give me a few hundred for it). My husband and I needed the cash to pay for groceries, other bills, etc. Because...surprise , surprise...money has been tight!!

What happens if I owe for something I don't own anymore?

[pepperoncini]

How old is the ring?

[Scooprack]

How old is the ring?

It was purchased in 2006

[DebtHater]

Even if you don't own it you still owe what ever debt you have on it.

If you owe $10,000 on a car that you can't afford and sell it and only get $8000 for it you need to find the other $2,000 in order for the lender to clear the title. Your situation is essentially the same thing.

In my opinion you're lucky the store let you hang in there this long. If I'm reading your post right, in four years you only paid $1,500 on a $5,000 ring. That comes out to a payment of $31.25 a month. The rate you were going it would have taken you another nine years to pay off! That's not including interest.

Regardless, at this point I would see if you can work out a settlement with the store. What ever it is, sell what you can to get the money and pay them! Don't use the money for something else. If you don't have stuff to sell, get a second job. You will have to take care of this. Failure to do so could result in legal action against you.

[AngelinaCatHub]

IF you are lucky, you could slip by, but since this was a secured debt, what you actually did would be tantamount to fraud. The store stated to sell it on eBay to pay THEM. Now your bk will still be discharged but their objection may be upheld and that particular debt you may still have to pay. It is possible that they get a Judgment in an Adversary Procedure as well. I understand you needed food and essentials, but not with someone else's property. You might face them and talk to their financiers, be upright and honest and ask them to reduce the balance and give you a reasonable settlement. This would do well for the attempt in the event they do protest at your 341. At least the Trustee will see you made an attempt to work with them. If you don't have the money, you simply don't have it. 'Hub

[catleg]

It's a safe bet that the OP paid far more in interest than principal over the term of this loan.

As far as what you owe, you do owe the money regardless of whether or not you still have the ring, they can file a lawsuit and get a judgment and garnish your wages or bank account.

However the debt should be dischargeable in BK.

[frogger]

If the seller had a security interest in the ring, if you sold it for cash, if you used that cash for other things than paying the jewelry store......

If the seller wants to be very aggressive, they could possibly file theft by conversion charges against you for selling something that you did not own.

[catleg]

When you say jewelry store (big name), are you talking about a place like a Zales with a credit card offered by (insert big bank name here)? I would say it's unlikely you'll have the kind of trouble that frogger is talking about with a big chain, compared with a mom 'n' pop.

But of course I could be wrong. Free advice is worth every penny paid for it. Luckily my wife did not demand an engagement ring. :-)

[pepperoncini]

I tend to agree with catleg on this one...

[Scooprack]

When you say jewelry store (big name), are you talking about a place like a Zales with a credit card offered by (insert big bank name here)? I would say it's unlikely you'll have the kind of trouble that frogger is talking about with a big chain, compared with a mom 'n' pop.

But of course I could be wrong. Free advice is worth every penny paid for it. Luckily my wife did not demand an engagement ring. :-)

Yes. It's a big name like Zales I don't know what bank is associated w them. I just know it's a credit card specifically for that store only. If I don't have the ring and I get sued...what happens if I file for bk after I get sued?

Too many jewelry probs for me...no more!! Ahhh!!! Lol

[catleg]

It looks like Zales card is thru Citibank.

You'd have to search Zales in the forums to see if anyone else has had a run-in with them.

[Scooprack]

It looks like Zales card is thru Citibank.

You'd have to search Zales in the forums to see if anyone else has had a run-in with them.

It's not a Zales account. It a store that ends in -berg lol. I guess I could do some research to find out. :p

[Scooprack]

It looks like Zales card is thru Citibank.

You'd have to search Zales in the forums to see if anyone else has had a run-in with them.

I found out the credit card is associated with HSBC Bank Nevada, N.A. (HSBC). Do you know anything about them?

[catleg]

They are the same ones who issue Best Buy. You could read some threads about their strategies for representing BB; they probably do the same for the jewelery store. Bottom line, mostly bark, little/no bite. They play poker, you have to call their bluff. But YMMV of course.

Just wanted to add, most of those threads are about BK cases. Outside of BK you're likely to eventually get sued.

[DebtHater]

Do you have debt other than this few thousand dollar ring? Although I don't know your whole financial situation, there are likely better alternatives than filing BK if this is the only debt.