coming to take it away?

[Doneygalpb]

We are awaiting my husbands discharge and should be only days away from this but we have not yet heard anything from rooms to go about the furniture we filed on. We have had it for 3 years and have only paid alittle on it before filing as it was a buy now pay later deal. Can they just show up anytime and get it or will we receive notice? Our attorney told us to chance it and file on it so we did but so far nothing. And we have two car loans thru ford motor credit and we are hoping to reaffirm and have a court date but we are told it is up to the judge even though we and ford have signed the reaffirmation. We have been making all our payments on time and pay more than the monthly bill. Has anyone been thru this with ford? All our attorney says is Ford is tuff? Also both cars are in my name as first signer and I have not filed with my husband. Any ideas would be greatly appreciated. I have lost way to much sleep and time over all this and just want it over. I can't remember how it feels to not be stressed about money anymore!

[BKParalegal]

The general misconception about Reaffirmation agreements is that people unneccessarily worry about the creditor repossessing the secured item even though the payments are being made. Let's factor some common sense in to this.

Why would any creditor want to take back a depreciated item that is not worth even close to the outstanding balance due?

Signing a reaffirmation agreement only benefits the creditor, hence why they bend over backwards to get you to sign it ( please don't argue the point, that by signing the reaff the creditor will continue to report positives on your credit report and they will send you statements again....small potatoes compared to the downside of re-agreeing to what was once a discharged debt.)

In short a creditor will repossess the secured item when and if you get behind on the payments, no different then if you filed BK or not, or signed the reaff or not. The difference with the signed reaff is that now they can come after you for the deficiency. Score- Creditor 1 / Debtor 0

When it comes to PMSI (Purchase Money Security Interest). It boils down to what is the stuff worth today that you bought three years ago? It comes down to this. First, the creditor will contact you after your discharge (or not, they may deem the 3 year old stuff isn't even worth a phone call, but lets pretend they do think there is value in a 3 year old piece of crap sofa from Rooms To Go), and they will ask you what is your intent with the stuff. Since you didn't sign a reaff (never ever do that) they will want to know if you want to keep the stuff and if you are willing to pay them. This is where you decide if you try to come up with a cash settlement, an installment agreement, or let them come pick up the stuff. I have seen where client's just tell the creditor to come pick the stuff up, essentially calling their bluff, and the creditor never calls back to schedule a time.

Good Luck

[albacore44]

The general misconception about Reaffirmation agreements is that people unneccessarily worry about the creditor repossessing the secured item even though the payments are being made. Let's factor some common sense in to this.

Why would any creditor want to take back a depreciated item that is not worth even close to the outstanding balance due?

Signing a reaffirmation agreement only benefits the creditor, hence why they bend over backwards to get you to sign it ( please don't argue the point, that by signing the reaff the creditor will continue to report positives on your credit report and they will send you statements again....small potatoes compared to the downside of re-agreeing to what was once a discharged debt.)

In short a creditor will repossess the secured item when and if you get behind on the payments, no different then if you filed BK or not, or signed the reaff or not. The difference with the signed reaff is that now they can come after you for the deficiency. Score- Creditor 1 / Debtor 0

When it comes to PMSI (Purchase Money Security Interest). It boils down to what is the stuff worth today that you bought three years ago? It comes down to this. First, the creditor will contact you after your discharge (or not, they may deem the 3 year old stuff isn't even worth a phone call, but lets pretend they do think there is value in a 3 year old piece of crap sofa from Rooms To Go), and they will ask you what is your intent with the stuff. Since you didn't sign a reaff (never ever do that) they will want to know if you want to keep the stuff and if you are willing to pay them. This is where you decide if you try to come up with a cash settlement, an installment agreement, or let them come pick up the stuff. I have seen where client's just tell the creditor to come pick the stuff up, essentially calling their bluff, and the creditor never calls back to schedule a time.

Good Luck

How can you tell if an item you purchased is a PMSI ?? I purchased a mattress from a retailer on a 1 year payment deferral , and I was sent a CITI card with the retailers name on it. Is this a PMSI ?? I woulden't think they would be interested in picking up a used mattress.

[TEW]

How can you tell if an item you purchased is a PMSI ?? I purchased a mattress from a retailer on a 1 year payment deferral , and I was sent a CITI card with the retailers name on it. Is this a PMSI ?? I woulden't think they would be interested in picking up a used mattress.

nope my bet is they wont or the cars or anything else. whats the market for used mattress. and ford can't sell the cars they are building. Do you think they want the one they already sold? just keep paying the car loans.

[Doneygalpb]

How can you tell if an item you purchased is a PMSI ?? I purchased a mattress from a retailer on a 1 year payment deferral , and I was sent a CITI card with the retailers name on it. Is this a PMSI ?? I woulden't think they would be interested in picking up a used mattress.

Yes this is a PMSI. I don't think they will pick up a mattress due to health codes and regulations on used ones.

[Doghouse]

BKParalegal, I owe 14,800 on a car worth anything from 18K to 23K depending on where you look. Why would I not want to reaffirm when there's equity in the car? If I don't reaffirm and continue making payments (as I am currently doing and intend to continue doing thru bk), is there any chance that the bank will do nothing or can they do something?

[keepmine]

BKParalegal, I owe 14,800 on a car worth anything from 18K to 23K depending on where you look. Why would I not want to reaffirm when there's equity in the car? If I don't reaffirm and continue making payments (as I am currently doing and intend to continue doing thru bk), is there any chance that the bank will do nothing or can they do something?

Don't get hung up on what Bluebook or some other source says it's worth. If you default, they'll sell it at auction at a firesale price and cars do nothing but depreciate.
Ask your lawyer how this is handled in your district. The majority of creditors are not pushing reaffirmation agreements. The last thing they need is another car in the repo lot. They'd much rather have your money.