Purchase Money Security Interest:
These security interest are lien rights that the seller retains in the goods purchased when the seller finances the purchase. The lien can be created by a specific written agreement or may arise when the item is financed on the seller's revolving credit plan or store credit card. This kind of lien does not have to be perfected by the usual filing of a UCC financing statement.
In theory, if the buyer discharges his personal liability on the debt through bankruptcy, the seller retains the right to reclaim the goods. The usual Sears, Good Guys, Circuit City and Zales credit plans give the seller a security interest in the goods purchased.
Contrast: if you buy the same goods using a Visa or MasterCard (credit provided by a lender other than the seller), you get clear title to the goods. Even if you discharge your liability on the credit card, the goods charged to the card are yours, free and clear of any security interest in favor of the seller or the credit card issuer.
Purchase money security interests can be avoided or stripped down to the present value of the collateral only in Chapter 11 and 13. See The Power of 13.
It is our experience that creditors with purchase money security interests in consumer goods almost never file a law suit to enforce their interest in the goods. They are not really interested in the goods. They rely on the debtor's fear of repossession to "encourage" debtors to pay for things with little present market value.
The above is from Moran Law. Keepmine has probably given you your best course of action in his post above (ignore the letter and see what they do).
These security interest are lien rights that the seller retains in the goods purchased when the seller finances the purchase. The lien can be created by a specific written agreement or may arise when the item is financed on the seller's revolving credit plan or store credit card. This kind of lien does not have to be perfected by the usual filing of a UCC financing statement.
In theory, if the buyer discharges his personal liability on the debt through bankruptcy, the seller retains the right to reclaim the goods. The usual Sears, Good Guys, Circuit City and Zales credit plans give the seller a security interest in the goods purchased.
Contrast: if you buy the same goods using a Visa or MasterCard (credit provided by a lender other than the seller), you get clear title to the goods. Even if you discharge your liability on the credit card, the goods charged to the card are yours, free and clear of any security interest in favor of the seller or the credit card issuer.
Purchase money security interests can be avoided or stripped down to the present value of the collateral only in Chapter 11 and 13. See The Power of 13.
It is our experience that creditors with purchase money security interests in consumer goods almost never file a law suit to enforce their interest in the goods. They are not really interested in the goods. They rely on the debtor's fear of repossession to "encourage" debtors to pay for things with little present market value.
The above is from Moran Law. Keepmine has probably given you your best course of action in his post above (ignore the letter and see what they do).
They are looking for $$$, I doubt they would even come pick up the stuff 
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