Aarons rental property

[teresab374]

Looked over 27 pages and didn't see this question. I am filing chapter 13 this week (I live in Missouri). I have rented property from Aaron's that I've had about 9 months now. (Stove,fridge,washer, dryer). And have paid big money into these items. Can I included them in my chapter 13. Really would suck if I had to give these items back and lose what I've put into it. Thanks in advance for any replies:-) :-) :-)

[justbroke]

You would definitely include them (RAC) in your Chapter 13 petition. The real question is how to treat them in your Chapter 13. As you are learning, a Chapter 13 is really a Reorganization of the Debtor. As such, you file and have a Plan approved and then make those payments over the life of the plan in order to discharge debt. I can not tell you whether or not the Trustee will like the high and seemingly endless Aarons payments. (How much longer do you have on all your contracts?)

How to treat Aarons in your plan is a tricky question. Do you treat it as a lease or just an ordinary installment contract. One has an advantage over the other. I don't know how they treat furniture "rental" stores in your State. (In Florida, they are treated as installment contracts which is a huge win for debtors in Florida.)

If you are talking to an attorney, ask them more specifically about the Aarons property and how it would be treated in the bankruptcy.

[zeezee]

Hmmm, even though it's rental furniture why wouldn't it be treated as secured? After all, she does have actual furniture (the same as a leased car, no?).

[justbroke]

Hmmm, even though it's rental furniture why wouldn't it be treated as secured? After all, she does have actual furniture (the same as a leased car, no?).

First, these rental agreements typically end immediately after the first payment period and then "renew" each time. It is more like a lease on an apartment. If this were a typical installment agreement, say from Rooms To Go, they would need to disclose the APR, tell you about the Fair Credit Reporting Act (FRCA) and make a bunch of other "credit" related disclosures.

It is treated, in most States, as nothing more than renting pieces of furniture for a short interval (and then renewing each interval). In fact, if your item breaks during the rental period, these companies like Aaron's and Rent A Center will fix or replace the product at their cost. So, the first thing would be to figure out how these are treated in your particular State. The majority indicates that these are nothing more than executory contracts or leases. They are not installment agreements.

(And leased cars are also true leases. You do not own the car, just as leasing an house does not give you any title ownership. In a car lease, you could obtain title to the vehicle if you paid during the lease term and then paid the residual value at the end of the lease. This works the same for furniture "rental" companies,)