Need Info.Please help, secured debt sold after Discharge

[helphelp]

As my signature states filed in Dec and Discharged April 1st. I listed a Kay Jewelers account on my creditor matrix. They did not file an appearance notice nor did they object. They debt was for a few small things (jewelery) for my kids and a girlfriend of my son. The balance when I filed was around $300. I Bought these items about 1 1/2 years prior to filing.

Post discharged a month later, I get a reaffirmation agreement from some company that purchased this debt. They are asking that I
1. Reaffirm the debt and pay $25 a month at 8% interest
2. Settle for 75%
3. Return the jewelry CMRR

My attorney's office sent the reaffirmation agreement and when I emailed her she said to just tell them I no longer have the items (which I don't so it isn't a lie).

After I emailed her the following day I get a letter from the company that states:

Dear XXXXXXXX:

We purchased the above account from Sterling Jewelers Inc. It is our understanding that the above collateral is currently in your possession. Since the debt has been discharged in your bk case, we have no intention of collecting the debt; However, we still have an enforceable security interest in the above collateral.

It is imperative you inform us of your intention concering the above collateral. Please contact us.........

If I tell them I no longer have the items will this make them go away or can they sue me for this amount. This debt was not reaffirmed, only listed on the creditors matrix. Since I bought nothing for me with this, nothing was in my possession so of course, it wasn't listed in my exemptions either. Any thoughts, ideas, I would greatly appreciate it!

[keepmine]

Just ignore them and they'll go away.

[soleprop]

i say respond with a copy of the creditor's matrix with the creditor they bought the debt from circled, date that final objections were due, and and copy of your discharge/closed status. then a short note that says they can do whatever they need to do to square up their books internally, but you no longer have obligations regarding this debt and further communication will be considered harrassment and treated as such.

[BassBoy]

......but you no longer have obligations regarding this debt and further communication will be considered harrassment and treated as such.

Not so true. What you must realize is that items purchased with a store card, for instance in this case, a jewlers card, the itmes purchased are secured, like when you purchase a house or an automobile......so......like a house or an automobile, if you do not pay, the lender/creditor will repossess, which they have every right to do. On the other hand, the value of the items the OP are probably far less than what he/she owed, but still, the creditor has a right to take back these items. Now, if you claim you no longer have them, then the creditor should be paid for the items, since they were a security interest.

But as keepmine stated, you could just ignore them and they may go away. Afterall, it's not worth the creditor's time and money for a few items that aren't worth much at all.

[soleprop]

exactly what i thought too. this is a debt you had included in your bankruptcy. the creditor was notified, they didn't object, the debts were discharged, bk closed. they're screwed. maybe HHM or lrprn will come in and make this extra clear for us .

[2muchstress]

it happened to me. send them your discharge letter or let them know of case number and they are done.

[JRScott]

They probably sent that letter before you informed them or your lawyer that you did not have the items. I'd merely respond stating you do not have the items in question in your possession. Include a copy of your discharge and creditor matrix and say that you hope that clears up things.

Good Luck

[keepmine]

On a discharged bk, a secured creditor does have the right to reclaim the security.
When you file a no asset Chapter 7, you'll get a copy of a letter the trustee sends to your creditors instructing them not to file a claimuntil he determines there are assets to distribute. A discharge extingusihes a debtors liability but, the lein interest of the creditor survives. That's why a mortgage company can foreclose and a auto lender can repo post bk and never have to file a claim.
In the Op's situation, it's not unusual for a creditor to sell a discharged debt like this to a collection agncy. Do a search here for Bass and Associates. They pop up frequently in these discussions. Usually, if you just ignore them, they go on to easier prey. What they want is for you to contact them and initiate a settlement offer. Don't rise to the bait. If they really want it, they'll need to file a replevin action and describle in detail the item they are trying to retrieve. This is expensive and timeconsuming. Just leave 'em alone. Make no contact, no explanations,etc.In a few weeks or months, they'll drop the matter.

[soleprop]

good to know!!!

[keepmine]

If they want to really playhard ball, they could petition the bk court to reopen the bk and object to the discharge based on fraudulent conveyance and ask that this particular debt be excluded from your bk.
We had this happen on another site a few years back. The debtor had sold 2 4 wheelers that were financed through Polaris. Combined value was close to $10K. He ended up settling for $8K.
I'd think there would need to be some serious money involved for this to happen.

[helphelp]

Thanks for all the information. I am going to take the advice and see if they go away. They gave me a deadline of May 15th to contact them with my intentions, I am going to let that pass and see what happens. I would think the little amount that is due they might go away. If all else fails and they file the replevin, I will just settle but try to settle for less since the item are not in my possession. Is it costly to file the replevin?

[southernbelle]

There should be a common sense department at this company. It's obvious it will cost more than it's worth to go after you for this little bit of money. I think all previous posters are right, they are just trying to scare you into paying them. Co's like this one probably preys on poor people that don't know any better.

I would ignore them and the will go away in time.