Redemption??

[shygal]

Just a question about redemption... if anyone knows the answer to it...I have been reading in several books that you can do this with secured interest cc , such as a best buy or furniture.It allows you to keep the things that you owe on and instead of reaffirming that debt.. you make an agreement to pay one lump sum within 30 days or so for the current market value ! Has anyone done this or heard of it? Please let me know.. thanks a bunch

[robivi3]

I would wait to see if they even come for the items first. I wouldn't stick my neck out to give them money. They really don't want the stuff back and if you wait they may not make any demands at all.

[HRx]

Just a question about redemption... if anyone knows the answer to it...I have been reading in several books that you can do this with secured interest cc , such as a best buy or furniture.It allows you to keep the things that you owe on and instead of reaffirming that debt.. you make an agreement to pay one lump sum within 30 days or so for the current market value ! Has anyone done this or heard of it? Please let me know.. thanks a bunch

Redemptions are pretty good, but they're mainly done on items that have more value to them. e.g. cars, large tv's, etc. Before opting for a redemption, make exuast your reaffirmation options first. To determine which is a best course of action for you.

[tinroofrusted]

I wish I would have done that with my car.... I am having one hell of a time trying to find a special financier to even touch me right now....

[HHM]

Reaffirmation is usually the better route, afterall, the trustee will question where you get the cash to redeem the property.

Especially on reaffirmations with Best Buy and/or other furniture places, you can usually bargain a fairly favorable reaffirmation.

[shygal]

HHM,
If you reaffirm... is it just on the current market value of the goods... the cc companies do not keep adding all the interest that has been put off due to the autmoatic stay? Do they?

[HHM]

Generally, reaffirmations are generally an "agreed to" sum that you will continue to owe the creditor with specified periodic payments at zero percent interest. The value can be based on whatever, but its NOT replacement value. It ultimately is some value between liquidation value and current market value.

For example, if you owe Best Buy $1,500 for a TV you bought. Best buy will probably offer you a reaffirmation agreement of $750 to paid at $50.00 per month, at zero percent interest until paid off. Note, the catch to reaffirmation agreements is that if you later default, the entire balance becomes due (the $1500) along with all interest recalculated on the original balance.

How much you can negotiate depends on how strong a case Best Buy has regarding its claim and the liquidation value of the item. Remember, short of some type of fraud, most creditors would rather reaffirm than take possession of the property or file an adversary proceeding to object to discharge of their debt.

[shygal]

HHM,
Thanks so much for the tip ! I truely appreciate it
I wasn't sure what the difference was between redemption & reaffirming.
So will all the cc companies reaffirm with zero percent interest?

[HHM]

HHM,
Thanks so much for the tip ! I truely appreciate it
I wasn't sure what the difference was between redemption & reaffirming.
So will all the cc companies reaffirm with zero percent interest?

Well, you don't reaffirm with unsecured credit cards (unless there are some fruadulent transfers or other objections to discharge). You need only reaffirm with secured creditors (and even then, you may not need to). Your unsecured debt will get discharged, so there is no need to reaffirm.

[shygal]

Well, you don't reaffirm with unsecured credit cards (unless there are some fruadulent transfers or other objections to discharge). You need only reaffirm with secured creditors (and even then, you may not need to). Your unsecured debt will get discharged, so there is no need to reaffirm.

HHM
I know that you don't reaffirm with unsecured cc. Our mortage and my leased car and my husbands financed truck are all current.. will we have to sign anything or reaffirm them to keep them(there is no equity involved in the truck or home)OR do those companies ask us not to do anything EXCEPT keep paying as usual?The part I wasn't understanding was how to go about the furniture cc. The stuff was purchased back in 2002 & summer of 2003.I just didn't want someone knocking on my door asking for it back I know it sounds crazy! Alot of people have been saying that even if you don't reaffirm with the furniture the likelyhood of them filing a judgement against you to obtain their stuff back is pretty slim, is that true?

[EdytaHome]

Dell sent a reaffirmation for my 2 year old home computer for exactly what I owed on it, $1900 at 0% interest. I laughed than I declined and indicated I would be surrendering the goods. I'm sure I can buy a new computer today for less than that amount. I even called the law firm to see what they wanted me to do and how I should return it. They told me that it would all be done through my attorney and they didn't want to speak to me, I guess we'll see.