Kay Jewelers came in as secured

[987654]

I guess I shouldn't be surprised, but I owed $750 on Kays and they filed as secured (well, their collection agency did).

So I guess my options are to pay them off during the plan or return the jewelry? One item was given as a present, but I have the other two items. How would that work?

Or do I negotiate? Fight the status of secured somehow?

[DebtEnder]

Call their bluff and ignore them. I doubt they have a perfected lien on 750$ of shiny stuff.

[987654]

Call their bluff and ignore them. I doubt they have a perfected lien on 750$ of shiny stuff.

Since they filed as secured, don't I have to do something/object to their claim to prevent it from automatically being paid under the plan?

[AngelinaCatHub]

Since they filed as secured, don't I have to do something/object to their claim to prevent it from automatically being paid under the plan?

Stand back a bit. Have you had a 341? It is up to them to prove anything. They must have paper to say this was for what. As above stated, relax, and see what will happen. There is much more to do and they are attempting to scare you. Beware, say NOTHING by word or letter. 'Hub

[987654]

I had my 341 yesterday. So I sit back and wait? Is it ever an issue? I wasn't expecting it and guess I don't really understand the secured thing...

[Reddrocket07]

I wouldnt suggest waiting. I would talk to your lawyer about filing an objection if you strongly believe it is unsecure. You only have a certain amount of time to state any objections to the trustee and bk court. Lack of effort on your part signifies with the court that you do not have an objection and the debt is correct. However, before pursuing this further, I would double-check and make sure that you opened up an open line of credit for the jewelry. Some businesses will give you credit, but only for a specific item. When that happens, it becomes secure because the credit you received was for a specific item.

I had a similar issue happen with me regarding a personal loan I took out for school. The loan continued to come up as secure, when I was positive that it was unsecure. I ended up objecting to the claim it was secure, but the lender provided proof via a document that the loan was secure. It still burns me today, but it has taught me to read the fine print. I also had an issue with my Mortgage Lender filing a claim stating I was behind on my mortgage. I was in fact not behind in this regard and objected. My mortgage lender never responded to my objection, so the claim was thrown out.

[Reddrocket07]

Also remember, this forum is for opinion and support and shouldnt be used for legal counsel. When in doubt, ask your lawyer.