Questionable Secured

[rjl0206]

To all,


Just wanted to ask if these were considered secured when I file?

Sears Central AC financing = $5500
Levitz Furniture = $2950

How will these be viewd in bk? thanks

Ray

[optimistic1]

These will be treated as unsecured creditors, up until if they file a secured claim for the goods. At that point, your attorney then files an objection to the total amount owed, and instead you pay only what the items are actually worth.

The remainder of the balance is then treated as unsecured and they get in line at the back end of your plan.

[LucyCat]

unsecured

Definatly they are unsecured. It's just no fun is it>>>LC paying into 2.5 yrs on bk 13

[njguy1972]

interesting

I have a furniture loan too.

So the correct strategy is:
1-add to bankruptcy as unsecured
2-allow them to file a claim as secured
3-my lawyer objects
4-trustee has me pay only what the furniture is worth now in resale
5-original cost minus resale amount is based on my percentage?

Is that correct?

[rjl0206]

anyone else? beuller, beuller.. Im particularly interested in the Hoome central air financing debt, thanks all.

Ray

[optimistic1]

As posted by HHM

"Your attorney doesn't need to file a motion, all he needs to do is list the value of the item in your petition and let Best Buy dispute it. If Best Buy files a proof of claim that lists their claim as 100% secured, then you simply object to the proof of claim."

So one way or the other, you might have to pay some of the balance, or you might pay nothing.

Best way to find out?

Call the credit issuer and ask them if they have a secured interest in the goods you purchased with the account. If they say no, great, if they say yes, great, they will only get so much.

Dont be afraid to call them. They cant haul you off to jail cause your gonna file a BK. And theyre not gonna come to your house with a crane to take the AC unit.

With that being said, I don't see how you would list the item in your schedules as "AIR CONDITIONER", it just doesn't make sense.