Objection-Secured versus Unsecured

[Divorced-n-done]

Looking at the dreaded Pacer today, I see that an Objection to Confirmation has been filed.

The debt in question was used to purchase furniture at a furniture store. Nothing special about this...typical store, go in and fill out their in-house credit application, get approved and then have the furniture delivered.

This company (rather the bank that provided the $$$) is stating that this should be treated as a SECURE claim, and not UNSECURED as we had listed on my petition.

No liens issued.

Is this just a desperate attempt by this bank to get all their dollars back? Any basis for this particular debt to be treated as secure?

[HHM]

Nope, if you bought furniture using in store credit, 99/100 times, that is a secured loan. If you still have it, break out the financing agreement. I am willing to bet the loan agreement gave the store (or financing entity) a security interest in the items purchased.

Basically, since you are in a chapter 13, you have 2 choices. Surrender the furniture...that way you don't have to pay it and then the stores debt becomes UNSECURD, or you have to pay them (either inside or outside the plan, but the chapter 13 plan must account for this secured claim). Basically, if you want to keep the furniture, you will need to amend you plan.

[krielly]

Definitely check out your contract. You might be surprised.

our paralegal had initially listed our furniture as secured, but our attorney looked over the contract and said "nope! - this is a line of credit and unsecured".

You never know........check the contract.

[MajorMike]

We had to pay Dell a secured amount for the computer we bought inside our plan...
The trustee sent a letter and asked if we were sure we wanted to pay them as a secured debt and I said, yes, I need my computer!