New Appliances

[florida]

We purchased new appliances with our BOA cc at the end of August because our stove, washer & dryer gave out - all at the same time - just our luck, actually, very typical for us .

Anyway - my concern is if these are considered luxury items and will they take them back? We are retaining our attorney in November, with no additional payments going to any creditors. We will then file at the end of December.

Thanks.

[ForumReader]

We purchased new appliances with our BOA cc at the end of August because our stove, washer & dryer gave out - all at the same time - just our luck, actually, very typical for us .

Anyway - my concern is if these are considered luxury items and will they take them back? We are retaining our attorney in November, with no additional payments going to any creditors. We will then file at the end of December.

Thanks.

I don't consider them luxury expenses and chances are they won't be taken back. Have you been making payments on them through BoA?

[florida]

Yes, we have made payments. However, October will be the last one. We will not be paying any creditors in November so we can save for our attorney.

On that point. We have one last bill to pay at the end of October - our Amex. If we don't pay them - does it look like we are showing preference? That is an extremely large minimum and we wanted to use that for our retainer - but I don't want to mess anything up.

Thanks again for all your help!

[HHM]

Ask your lawyer, at this point, you should not be paying any credit cards unless you have too. Thus, you probably should not pay AMEX.

How much did you spend on those appliances. Regardless if they are necessities, they could still be a problem given the recentness of the purchase.

[sjcmCA]

Ask your lawyer, at this point, you should not be paying any credit cards unless you have too. Thus, you probably should not pay AMEX.

How much did you spend on those appliances. Regardless if they are necessities, they could still be a problem given the recentness of the purchase.

Some attorneys recommended to pay the specific creditor a least for 6-month while the debtor stops paying other creditors. In California, the preference is not a big issue. http://www.moranlaw.net/preferences.htm

[OhioFiler]

We purchased new appliances with our BOA cc at the end of August because our stove, washer & dryer gave out - all at the same time - just our luck, actually, very typical for us .

Anyway - my concern is if these are considered luxury items and will they take them back? We are retaining our attorney in November, with no additional payments going to any creditors. We will then file at the end of December.

Thanks.

You may well end up remaining responsible for this debt. How much did you spend on this purchase? If BoA pursues this I think you lose. The likelihood that 3 appliances die at the same time exactly 2 months before you decide to file BK could be hard for a judge to believe should you end up in an AP.

[AngelinaCatHub]

Before purchasing these big ticket items, you must have had some idea of financial stress. Would it not have been more prudent to get an appliance repairman in to look at all three at once? It would have been a lot cheaper and now these items may haunt you.

I'm pretty handy and usually if a dryer goes out, it is either the belt, heater coil (cheap) or blockage. A washer is usually the belt, or motor bushing (cheap). An electric stove, usually if all burners are out, the cord connections burned. Clean connections or change cord.

'Hub

[CityFarmer]

Anyway - my concern is if these are considered luxury items and will they take them back?

Since you paid with a credit card, that debt is unsecured. BoA can't take the appliances. However, they may contest the dischargability of that debt.

Assuming you are able to exempt the appliances in your BK filing, you'll be able to keep them, but you might have to continue paying on that debt.

[LimpDisc]

I think the total cost for these appliances is important. If you purchased your average appliance I wouldn't be too concerned. However, if you went out and purchased the most top of the line appliance it could be an issue.

[florida]

Thanks for all the replies. Yes, we've been aware of financial crisis for awhile...
We had a good teaser rate from BOA and decided to use it once the washer "officially" died. The washer dryer set was not the cheapest, but more middle of the road. The set has been on its last legs for many years. My husband has fixed it several times and we've had a professional repair crew out twice over the last 8 years.

The stove was ancient - as it was in the house when we bought it, and no longer heated to the correct temperature.

We got a good deal - we spent approx. $2,000 for all three, which includes the taxes and service contract.

I just don't want them to take it. I don't have a problem on paying for them afterwards. I'm not trying to be irresponsible. We have made many mistakes in our life and we are just trying to fix it.
Do I call BOA and make arrangements or tell my attorney?
We have a meeting next Monday to "retain" him.

Thanks.

[CityFarmer]

BoA doesn't have a security interest, so they can't take the appliances.

I wouldn't say anything to BoA about it. Let them make the first move. They might not bother doing anything.

Do tell your attorney about it. He needs to be aware of anything that might affect your case.

$2K doesn't seem extravagant for a washer, dryer, and stove. Yes, there are cheaper choices, but this isn't top-end stuff, either.

[LimpDisc]

I would try to wait at least 3 months before you file BK. I'd also make the 3 payments on that account during those 3 months.

[HHM]

You will need to wait 3 months before filing.

As was pointed out, BofA won't have a security interest in the items, so you are not going to lose them. But given the amounts involved, you are probably at low risk of an objection, and you at least have an argument that the items are necessities. Worst case scenario, you emerge from BK still owing BofA $2,000. But all things considered, that is a very low risk (so long as you wait at least 3 months from you purchased the items).

[AngelinaCatHub]

Thanks for all the replies. Yes, we've been aware of financial crisis for awhile...
We had a good teaser rate from BOA and decided to use it once the washer "officially" died. The washer dryer set was not the cheapest, but more middle of the road. The set has been on its last legs for many years. My husband has fixed it several times and we've had a professional repair crew out twice over the last 8 years.

The stove was ancient - as it was in the house when we bought it, and no longer heated to the correct temperature.

We got a good deal - we spent approx. $2,000 for all three, which includes the taxes and service contract.

I just don't want them to take it. I don't have a problem on paying for them afterwards. I'm not trying to be irresponsible. We have made many mistakes in our life and we are just trying to fix it.
Do I call BOA and make arrangements or tell my attorney?
We have a meeting next Monday to "retain" him.

Thanks.

Thank you. Nobody here is Judging your intentions. We have interest in your interest. This means, we have experience now, not then. We have all been where you are or worse.

I apologize for what I did not know, and you already pursued. Mrs. and I are very frugal now, but once, if we wanted it, we COULD just buy it. Those days are over. I have a high technical talent. Comes from my career in fine mechanics and electronic. This is why I quizzed. I believe you will be fine.

I wish you the best and keep all of us posted. 'Hub

[whipster1]

Worst case scenario you have to reaffirm for that amount. No biggie since those are clearly not luxury purchases.