Last year, Feb 06, I took out a personal loan, the contract says it is secured by household items (Nothing listed other than the words "Household Items". I don't really have any household items now since my home burned down and I had to start from scratch since I didn't have renter's insurance. The furniture I do have is still being paid for montly and still have approx 6 more payments. Other than the furniture I still owe on, I do have a couple of old TVs, odds and ends, etc that I bought at estate/garage sales. Nothing of any monetary value. My question is, during my Ch 7, how will the personal secured loan be dealt with since I don't really have anything to take? I will be signing my Ch 7 paperwork tomorrow.
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You need to discuss this with your attorney, since there was a fire involved destroying the secured collateral for the loan.....
Not sure how this will affect your bankruptcy....Minny
"It's amazing the paths that our feet sometimes follow in life".
My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different. -
We had a friend who filed BK and they had some loan from Citibank (Citifinancial) that was secured by household items including a personal computer and treadmill. He was worried about it in bankruptcy, but he kept his items and it was never an issue. I'm not sure if this is the same kind of loan.Comment
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Nojusticehere, there is a way to list your fire and loss in your bankruptcy filing; you (or your atty) puts it on Form 7. While the question is there to let the trustee know whether you received settlements or insurance money from such an event, it also works for you because you can insert a sentence or two in there to explain that you were uninsured and lost everything. Also, the fire department probably gave you a copy of a report on the day of the fire saying they were there; if not or it was all too confusing, you can go down to the fire dept and get a copy of it, which should suffice for proof that yes, it did happen, and yes, the apt was a total loss.
That, and honestly I would speak to my atty about listing this debt as *unsecured*, since there is no longer any security, and put the onus on the creditor to prove that it is secured and list exactly what it is secured by. I have a feeling (and again, check with your atty) that if you list it as unsecured you won't hear a peep out of them.
I have been through a fire and it was hell. I feel for you. Good luck!!!Nolo Press book on filing Chapter 7, there are others too. (I have no affiliation with Nolo Press; just a happy customer.) Best wishes to you!Comment
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Thank you Freshlikeadaisy. It was hell,not to mention my bf was really burnt bad and was in the hosp for quite a while. He's doing better now, but is badly scared.
On the subj of furniture. I met with my atty today. Although I took out the loan in Jan 07 (sorry I said 06 and meant 07), I have nothing in my position now that I had then. I have a furniture payment where I purchased furniture in Feb 07 which he says is exempt because I still owe and the furn is secured by the creditor. So his comment was ".....they're out of luck, they get nadda, let em try". It's listed as unsecured. Good news!Comment
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Are you sure that you financial situation requires Bankruptcy? Most of use would use a ratio of something like dischargeable debt divided by annual income of at least one time or prehaps more if you are young. Many debts can be settled for less the full amount.
Bankruptcy can help, but it will never leave you. It can keep you from better jobs or many other things you may want later in life.
regards,
emoneyComment
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