Dell Preferred Account Bankruptcy

[Jasonc126]

I just had a free consultation with a bankruptcy lawyer yesterday regarding a Chapter 7 and I was telling them about my Dell Preferred Account. The attorney said that that is considered a secured debt? Is that true? I bought my dell computer in October of 2006. I was just wondering will they take away my computer from me? The lawyer also mentioned something about redemption where you would pay the face value of the computer. Can someone explain this? Thank you.

[bcvw]

What would a 2-year-old laptop be worth? A few hundred at most? I doubt they'd even bother trying to repossess it.

[momof5]

Laptops are not made to last more than a couple/few years. They are so expense to fix that people usually just junk them and purchase a new one. I have 2 laptops that sit here unused because...1. The monitor doesnt work and the other one where the hole the charger goes into has a broken prong ($400 to repair) .

A 2 year old laptop no matter how much it originally cost only has a resale value if you have a buyer willing to risk that it can go at any minute.

[TEW]

They have not asked for mine back and it''s less then a year old. But the same one new is 1/4 the price i paid for this. the prices go down on these types of things. and there is not much of a market for used PC's

[mgmadara]

...the other one where the hole the charger goes into has a broken prong ($400 to repair)

I had this happen to one of my laptops (Toshiba). I searched on the make and model number and found a repair manual that showed me how to take the laptop apart ($6) and the replacement part I needed ($25) and fixed it myself. I figured it was already a doorstop so if I ruined something I was only out 30 bucks. I also found a guy on ebay from FL who fixes them for $150.

[justbroke]

I would never redeem any broken computer. The value of that laptop is probably less than $200.00. (Unless there's value there.)

(Err, removed references to Chapter 13)...

The reason your computer is a secured debt is because you unwittingly executed a cardmember agreement which reads that the seller (Dell) automatically receives a "purchase money security interest" in each item you buy. Most consumers don't know or understand that key piece of information. That makes it secured debt.

Don't know if they will come for the computer. it will be up to you to decide if it's worth the redemption value, to you.

[TEW]

Tell them to come get it they most likly will not

[HHM]

It's a secured debt, but it does not matter.

[rockyroad]

I also have Dell equipment. 2 Laptops, 1 desktop on biz credit acct. and 1 server and a laptop on a biz lease. I'm wondering what happens to these items when filing chapter 7? HHM...please explain the above statement "It's a secured debt, but it does not matter."

Many Thanks!

[JRScott]

In the bankruptcy I filed we listed DELL as unsecured. I had bought the computer in 2004 and filed in 2007. There were no protests. No one came to get the computer. A 2 year old computer is not worth their time and depending how many payments you made you may actually have paid for the computer.

[Jasonc126]

I was told to list Dell as a secured debt so I hope I don't lose my computer.

[JRScott]

They don't want your computer. I'd say there is a 90% chance you will not hear from them.If they do contact you they'll over a redemption amount that is probably much much lower than what you owe. If you don't pay it though I doubt they'll come get it as it would cost to much.

[Jasonc126]

Thank you for your help.

[jktrading]

What if you sold it to someone? Then how is it secured debt any longer?

[JRScott]

What if you sold it to someone? Then how is it secured debt any longer?

You sold a computer you didn't own?

Basically hey could charge you had no right to sale it and since they can't repossess it they would be within their rights to object to discharge of the debt meaning you'd still owe it.