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? About Secured Debt being sold to Collection Agency

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    ? About Secured Debt being sold to Collection Agency

    My son is thinking about CHapter 13.
    In going thru his papers for him, he had some secured debt (MAC Tools) that was sold to a third party. Is that debt no longer considered secured or what?
    He needs his tools for WHEN he finds another mechanic job so he doesnt want to lose them, even though he is not doing that kind of work right now.

    #2
    They are still secured if the card has the so-called "purchase money security interest" (PMSI) attached upon purchase. Generally though, no one bothers to come after the collateral. Well, there is always Best Buy, but they are about the only ones to write a letter.

    It is likely that the collector will file as unsecured. I would list it, on my Chapter 13 Schedule F, as unsecured.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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