Question about keeping secured debt

[beetlejuice]

Ok so my wife is in the process of filing ch. 7. She hasn't filed yet, still paying the lawyer to do it.
We decided to not keep our car as we are to under water with it. (owe 11k only worth just under 7k) plus it has 106,000 miles on it.
I assume we just stop paying on it now and give the car up a few months after discharge correct?
We have a table with Rooms To Go/Synchrony that we are told they would want back. No big deal. They can have it.
House in homesteaded so not worried about the house.

Here's another question and my main one. We have an air conditioner that is on a secured Wells Fargo Home Projects visa card. The lawyer said they will probably want it back since it's not that old. Living in FL this can't happen. We can't just get another $8000 unit.
The lawyers assistant said we can reaffirm the AC. Don't we have to be current on payments in order to do that? It hasn't been paid on it in 3 months in preparation of filing.
Can it still be reaffirmed even though it's not current?

[beetlejuice]

I should note that my wife has the wells fargo card that the ac was purchased but my father also opened an account to pay for part of it. She was only approved for so much so he applied for the same card to help. 2 contracts with the ac company were signed and 2 cards from 2 different people were used so how could they even take the ac back if thats the case? He's still current on his side.

[justbroke]

The issue with the AC unit is certainly an interesting position. Perhaps you could redeem the AC unit and pay the current market value. It's such a tough area when it comes to certain types of financed fixtures in Florida. (I live in Florida as well.)

You didn't say the age of the AC unit. If it's less than a year, negotiating a lower value may be difficult. If it's more than a year old and has seen some Florida summers (2+ years?) maybe the negotiation is easier. You should ask about the redemption. Maybe the father can get an increase on his credit line (if it's the Well's Fargo VISA) and pay the redemption value.

[beetlejuice]

The issue with the AC unit is certainly an interesting position. Perhaps you could redeem the AC unit and pay the current market value. It's such a tough area when it comes to certain types of financed fixtures in Florida. (I live in Florida as well.)

You didn't say the age of the AC unit. If it's less than a year, negotiating a lower value may be difficult. If it's more than a year old and has seen some Florida summers (2+ years?) maybe the negotiation is easier. You should ask about the redemption. Maybe the father can get an increase on his credit line (if it's the Well's Fargo VISA) and pay the redemption value.

Everything installed will be a year old as of next month so it's still in new condition. I found out my father has a $0 balance on his card so I still wonder how this is going to pan out when 2 contracts were signed for the same unit.

[justbroke]

Well, his card is paid off. Can you transfer the balance? As for your Dad, there is no PMSI in the unit any longer, so only you have an enforceable contract with WF. I might still try to negotiate a little because they will certainly "lose" some value by coming to remove the AC unit. Maybe negotiate, and do a reaffirmation with a new value. You never know.

[beetlejuice]

Well, his card is paid off. Can you transfer the balance? As for your Dad, there is no PMSI in the unit any longer, so only you have an enforceable contract with WF. I might still try to negotiate a little because they will certainly "lose" some value by coming to remove the AC unit. Maybe negotiate, and do a reaffirmation with a new value. You never know.

There's no way he'd be able to transfer. His limit wasnt as much and I know they wont increase it. I understand his contract was paid off, but he technically still owns part of the unit no? So how can they come take something if he paid off his contract?
Still waiting to hear from the lawyer, but you know how they go unless you have them all paid up.

[justbroke]

Well, it is still an interesting scenario indeed. I'm sure that some Florida bankruptcy attorneys have specifically dealt with this issue. Please let us know what your attorney thinks given that the unit is partially paid off by another co-owner of the property???