Rental Furniture

[Jenn]

I was told by my attorney that the trustee would not allow payment of full to rental companies- because its not somethig like a loan, it is something you can give back. If it was finanaced, thats different- not only that, he said they overcharge so much that they would not allow the payments.

[mia111]

no they did not object to anything. They ended up being quite happy with the money the trustee paid them. Be aware that you should submit what the rental furniture cost like at a store. The trustee will add about 6 percent interest to this and that is what they will be paid as a secured creditor. They are losing out on the years of interest payments you would have given them over the life of the contract. My lawyer set them straight and I never heard from them again.

Hi, all hope you had a blessed Thanksgiving
I did as well
I let my lawyer know that the rental company have been contacting me and he didn't set anything straight.
He just sent me a letter stating that my contract with the rental company is
a lease/purchase agreement and in order to avoid a challenge to the confirmation of my plan,the full contratacutal payments must be made
what does this mean?
I am ready to give everything back, because this stress is not worth it
thanks for listening!

[SinkingFast]

Sounds like your attny has taken the stance that you cannot Cram Down the amount owed the Rental Company for the furniture.

Under Old Law, you could Cram Down the value of collateral on Secured Loans to the actual worth of the car or property. New Law changed that. Now you have to have purchased a car 910 days prior to filing, or other property 1 year prior to filing.

SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

(a) IN GENERAL- Section 1325(a)(5)(B)(i) of title 11, United States Code, is amended to read as follows:

`(i) the plan provides that--

`(I) the holder of such claim retain the lien securing such claim until the earlier of--

`(aa) the payment of the underlying debt determined under nonbankruptcy law; or

`(bb) discharge under section 1328; and

`(II) if the case under this chapter is dismissed or converted without completion of the plan, such lien shall also be retained by such holder to the extent recognized by applicable nonbankruptcy law; and'.

(b) RESTORING THE FOUNDATION FOR SECURED CREDIT- Section 1325(a) of title 11, United States Code, is amended by adding at the end the following:

`For purposes of paragraph (5), section 506 shall not apply to a claim described in that paragraph if the creditor has a purchase money security interest securing the debt that is the subject of the claim, the debt was incurred within the 910-day preceding the date of the filing of the petition, and the collateral for that debt consists of a motor vehicle (as defined in section 30102 of title 49) acquired for the personal use of the debtor, or if collateral for that debt consists of any other thing of value, if the debt was incurred during the 1-year period preceding that filing.'.

http://thomas.loc.gov/cgi-bin/query/...jQBV3:e189457:

So if you had the rental furniture less than one year before filing for Ch 13 BK, you're gonna have to pay the full amount as agreed upon in the original contract you signed.

If your proposed Plan allows for paying less than is contractually due, the Creditor will have to decide whether to accept the reduced payment or repo the property.

Even so, you are under protection of the Automatic Stay and the Rental Company should not be contacting you. This is a violation of the BK Law. If your attny won't stop this particular Creditor, you might try contacting the Clerk of the Court or your Trustee and tell them what's going on.

[mia111]

Sounds like your attny has taken the stance that you cannot Cram Down the amount owed the Rental Company for the furniture.

Under Old Law, you could Cram Down the value of collateral on Secured Loans to the actual worth of the car or property. New Law changed that. Now you have to have purchased a car 910 days prior to filing, or other property 1 year prior to filing.

SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

(a) IN GENERAL- Section 1325(a)(5)(B)(i) of title 11, United States Code, is amended to read as follows:

`(i) the plan provides that--

`(I) the holder of such claim retain the lien securing such claim until the earlier of--

`(aa) the payment of the underlying debt determined under nonbankruptcy law; or

`(bb) discharge under section 1328; and

`(II) if the case under this chapter is dismissed or converted without completion of the plan, such lien shall also be retained by such holder to the extent recognized by applicable nonbankruptcy law; and'.

(b) RESTORING THE FOUNDATION FOR SECURED CREDIT- Section 1325(a) of title 11, United States Code, is amended by adding at the end the following:

`For purposes of paragraph (5), section 506 shall not apply to a claim described in that paragraph if the creditor has a purchase money security interest securing the debt that is the subject of the claim, the debt was incurred within the 910-day preceding the date of the filing of the petition, and the collateral for that debt consists of a motor vehicle (as defined in section 30102 of title 49) acquired for the personal use of the debtor, or if collateral for that debt consists of any other thing of value, if the debt was incurred during the 1-year period preceding that filing.'.

http://thomas.loc.gov/cgi-bin/query/...jQBV3:e189457:

So if you had the rental furniture less than one year before filing for Ch 13 BK, you're gonna have to pay the full amount as agreed upon in the original contract you signed.

If your proposed Plan allows for paying less than is contractually due, the Creditor will have to decide whether to accept the reduced payment or repo the property.

Even so, you are under protection of the Automatic Stay and the Rental Company should not be contacting you. This is a violation of the BK Law. If your attny won't stop this particular Creditor, you might try contacting the Clerk of the Court or your Trustee and tell them what's going on.

Thanks so much Sinking fast
so basically if the payments in the plan do not pay off the total that the lease agreement is for the rental comapny has the right to refuse the plan payments and take the stuff back.
When the rental company did contact us,they told my husband that the total in the plan would not pay off the total balances within five years,so I know that they will object and repo the stuff,
which at this point I really don't care, they can have it all back and atleast my plan payments will drop down lower,because when we added them it raised our payments.Also my lawyer will not do anything about them contacting us,it took him three weeks just to contact us when we told him about this,from day one him and his office have been very disrepectful to us,I wish I could switch attroney's,I guess you get what you pay for becasue it only cost us $300 to file.
Thanks again