Announcement

Collapse
No announcement yet.

Chapter 7 and Reaffirmation vs. surrender

Collapse
This topic is closed.
X
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Chapter 7 and Reaffirmation vs. surrender

    Hello Everyone,
    I'm hoping that there is someone out there that can help me.
    I recently filed Chapter 7 which I prepared myself and filed. I am now
    getting letters from attorneys (we have not had the meeting of
    creditors yet) and they are all saying that I have to either surrender
    my collateral or sign a reaffirmation agreement. They claim a Purchase
    money security interest in the furniture/jewelry, etc. I bought years
    ago and say that I have to do one or the other.
    In my filing, there were certain exemptions, under section 522 I think
    for household goods ($8K) and jewelry (1.5K). Can I just say that
    these items are exempt up to these exemption amounts, or do I actually
    have to turn everything over or sign a reaffirmation agreement? I've
    been paying for a few years, so most are almost paid off.
    My meeting of creditors is next week. Someone please help.
    Thanks,
    David

  • #2
    Chapter 7 and Reaffirmation vs. surrender

    On 24 Aug 2004, [email protected] (David) said/asked in substance:
    I recently petitioned pro se for Ch. 7 bankruptcy relief and am now getting letters from attorneys saying I have to either surrender my collateral consisting of furniture/ jewlery, etc., I bought years ago or sign a reaffirmation agreement.
    Assuming just for the sake of analysis that the sellers of what you
    refer to as "collateral" had timely and otherwise validly perfected
    security interests therein and also that none of these items were
    covered by your state's statutorily provided exemptions, and furthero
    putting aside for the moment the issue of the propriety of demands of
    the sort to which you refer addressed to you rather than to the
    bankrutpcy court or trustee, query (for you to answer for yourself)
    what is likely to occur, as a PRACTICAL matter, if your response were
    to the effect that you decline to reaffirm the debt in question and
    invite the letter-writer or his/her client to come to pick up the[indentified "collateral" at issue] which you thereby "surrender" any
    day/time they desire during normal business hours on reasonable
    advance notice to you?
    They claim a purchase money security interest in the widgets at issue.
    What if anything have you done to verify whether what they claim in
    this respect actually was so in terms of what if any "security
    interest" has been perfected in the particular widget at issue and
    also still remains in effect despite the passage of "years"?
    In my filing, there were certain exemptions for household goods ($8K) and jewelry (1.5K). Can I just say that these items are exempt up to these exemption amounts?
    Presumably, you've already so "said" in/by your petition as filed -
    right?

    Assuming you've claimed the exemptions made available by your state's
    law, what do you think will occur, as a PRACTICAL matter, if you were
    to decline both to reaffirm and also to offer to return any of the
    widgets in question (or, for that matter, to respond to the letters to
    which you refer at all)?
    I've been paying for a few years, so most are almost paid off.
    Exactly.
    My meeting of creditors is next week.
    Arrive on time. Don't wear your Rolex or diamond necklace. Answer
    the questions, if there are any, responsively yet succinctly and
    trutfully. Decide what (if any) compromise/settlement to try to make
    then or later.

    Comment


    • #3
      Chapter 7 and Reaffirmation vs. surrender

      [email protected] (David) wrote in message news:<[email protected] com>...
      Hello Everyone, I'm hoping that there is someone out there that can help me. I recently filed Chapter 7 which I prepared myself and filed. I am now getting letters from attorneys (we have not had the meeting of creditors yet) and they are all saying that I have to either surrender my collateral or sign a reaffirmation agreement. They claim a Purchase money security interest in the furniture/jewelry, etc. I bought years ago and say that I have to do one or the other. In my filing, there were certain exemptions, under section 522 I think for household goods ($8K) and jewelry (1.5K). Can I just say that these items are exempt up to these exemption amounts, or do I actually have to turn everything over or sign a reaffirmation agreement? I've been paying for a few years, so most are almost paid off. My meeting of creditors is next week. Someone please help. Thanks, David
      If you borrowed money for the purpose of buying, say, furniture or
      jewelry, the lender has a "purchase money" security interest in that
      (and only that) collateral. This kind of collateral must be redeemed
      or surrendered, or the loan reaffirmed, regardless of exemptions.

      But there are forms of lending in which the creditor acquires a
      non-purchase-money security interest in your household goods. Consumer
      finance companies and a predatory kind of lender called "loan for
      title" companies often have this in their agreements. You can count on
      such a company trying to misrepresent the agreement when it comes up.

      If you borrowed money in a way that gave your creditor a security
      interest in household goods you already owned, that is not a purchase
      money security interest, and the rules are different. The creditor
      will try to claim otherwise, so you should be prepared for that. State
      law will govern how you should go about protecting such property: a
      typical way would be to value the property and then invoke your
      exemptions on so much as is covered by the exemptions.

      If you haven't figured it out already, you are swimming with sharks in
      deep water. You really shouldn't be doing this without an attorney.

      --
      Not a lawyer,

      Chris Green

      Comment

      Working...
      X