Question about Dell computers

[HelpThisGirl]

I just bought a Dell laptop a month ago on my Dell Charge Account ( before I had considered filing ) and I'm thinking I'm going to have to go 13. The computer was $999 with tax. In a 13, will they file a motion to reafirm ( sp ) or if I just include it, be part of paying the secureds?

[HHM]

Just pay the computer outside the plan (i.e. simply make your normal monthly payments directly to Dell Credit).

You don't reaffirm debts in a chapter 13, secured debts either get paid inside or outside the plan (or surrendered). IT IS BEST to pay secured debts outside the plan as there is usually no benefit to paying inside the plan (especially for something as minor as this computer expense).

If you pay the computer inside the plan, all you are doing is putting money in the trustee's pocket because the trustee takes a percentage of your TOTAL payment you make to the trustee, thus, if you include this payment inside your plan, the computer will actually cost you more, not less.

[CindyLou]

first of all, i would list this as an UNSECURED debt on your schedule first and see if they file a claim. Are you going to be paying 100% to you unsecured? Are you sure this is actually a secured debt? Have you checked your agreement with them on this purchase? Being that is was under $1000, it may not be secured. I would call them and ask for a copy of the agreement to be sent to you before you list them as secured. If in doubt list as unsecured and see what happens.

My school of thought is that is it has a credit card attached to it ALWAYS put it in the unsecured category. If they wish to disagree they can do so when they file the claim.

THEN if they do file a claim as secured I would take HHMs advice and ask to pay it outside the plan. The could fail to file a claim altogether. Who knows.

[HelpThisGirl]

Thank you both for your help. When reading the rest of the forum posts regarding Dell, it seemed to focus on a 7 and I think I'm headed for a 13, so I wasn't sure how to approach it. I'm going to ask my attorney when I see him this coming week. I'm sure this has come up before. The computer was just bought a month ago so I will pay it if I have to, of course.

[CindyLou]

You are very welcome. Look at it this way. Either way you go, they still have to actually file a claim to get anything. Any who know if they will even file a claim. So include them and then go from there. Keep us posted.

[HelpThisGirl]

I will and thank you again. I'm really glad you guys are here. It is a relief.

[aa06a47]

Dell, the company, isn't actually the company that extended the credit. I would show it as unsecured debt when you file. If the credit company files a secured claim, offer to give the computer back to them as full payment. They know that 1K computer you just bought won't fetch 500 bucks, so you might be able to work something out with them.