DH and I bought some badly-needed new furniture in January 2010, before we had any idea we'd be filing BK. We bought it using store credit (Havertys Credit, not backed by Citi as some of their credit is), and intended to pay it off in Feb with our tax refund. However, we ended up needing the tax refund for moving expenses, so we made a few payments on the furniture before we decided to file BK. On the advice of our attorney, we stopped paying everything in April, a month before we filed.
When we had our Ch13 341, Havertys was one of the two creditors who showed up. The rep introduced himself beforehand, saying "I'm the least of your worries today," and just sat there quietly during the hearing. I think he asked if we still had the furniture, but that was it.
Today our attorney sent us a reaffirmation agreement they got from the lender -- I suspect due to our Ch7 conversion. All the attorney said was, "If you choose to reaffirm the debt, sign on the pages highlighted for signature." Havertys wants to charge me ~$2,400, the full amount we still owe, plus 21% interest. After we're discharged, we could probably afford to pay it off, but...after doing some searches here, I have found numerous good reasons not to reaffirm:
- If we're going to eliminate our debt, let's eliminate all of it
- If we reaffirm, we'll no longer have BK protection on that debt
- It's unlikely they will ever come get the furniture anyway
- Even if they do, they will need a court order and it will take some time
- Why pay full price plus high interest for furniture that is (now) used? Granted, it's only gently used, but still...when our BK is confirmed we could go get new stuff for that price.
However...it's possible that I'm missing something, especially now that we are converting to Ch7. Can you think of any good reason we should reaffirm this debt?
When we had our Ch13 341, Havertys was one of the two creditors who showed up. The rep introduced himself beforehand, saying "I'm the least of your worries today," and just sat there quietly during the hearing. I think he asked if we still had the furniture, but that was it.
Today our attorney sent us a reaffirmation agreement they got from the lender -- I suspect due to our Ch7 conversion. All the attorney said was, "If you choose to reaffirm the debt, sign on the pages highlighted for signature." Havertys wants to charge me ~$2,400, the full amount we still owe, plus 21% interest. After we're discharged, we could probably afford to pay it off, but...after doing some searches here, I have found numerous good reasons not to reaffirm:
- If we're going to eliminate our debt, let's eliminate all of it
- If we reaffirm, we'll no longer have BK protection on that debt
- It's unlikely they will ever come get the furniture anyway
- Even if they do, they will need a court order and it will take some time
- Why pay full price plus high interest for furniture that is (now) used? Granted, it's only gently used, but still...when our BK is confirmed we could go get new stuff for that price.
However...it's possible that I'm missing something, especially now that we are converting to Ch7. Can you think of any good reason we should reaffirm this debt?
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