Post discharge-creditor going after ring

[jsmith1]

I am in Ohio
I owned a diamond ring flat out. Nothing very expensive, I believe it cost me about $2500 and is probably appraised lower than that.

About a 1.5 years ago I opened a JB Robinson account and had the diamond refitted to one of their rings. I think the total cost, out the door, was maybe $500 which included the gold band ring ($300 I think) and the refitting cost.

Due to divorce and unforeseen medical circumstances, I had to file Ch7 a few months ago. Everything was discharged last month.

I just received a letter from JBR's attorney stating that the Ch7 has discharged and they are demanding their ring back. First of all, I was never told that anything would be used as collateral when using their card. But after reading the agreement just now:

https://www.jbrobinson.com/webapp/wcs/stores/servlet/CreditTermsConditionsView?storeId=10510&catalogId=10001&langId=-1

it looks like it is. I know, I know... I should have spotted this when I signed up. So my question is... what am I on the hook for? Do I actually owe them anything? Do I owe the ring, diamond included, even though it wasnt bought from them? Do I have someone remove the diamond and give them the ring? Can I make an offer to them for the ring (the band) under what I paid for it? Am I on the hook for the "service" of resetting my stone?

[Faust]

Ask them to identify it in writing.

[AngelinaCatHub]

Ask them to identify it in writing.

Good idea and if they cannot describe it and show you your signature for that labor and service, let them attempt to sue you. It would be simple and in small claims court. Your discharge could be used as positive argument. If the Judge goes against you, give them only their band back. That stone is yours. 'Hub

[BCA2009]

I would just ignore them. Sounds like the max you owe them is $500. There is no way they are going to go to court to try and recover $500.

[anime-chicka]

The setting itself is theirs. The diamond is not. Tell them to go pound sand since the account is now post-discharge. I own a few rings from them and I'd love to know what setting is honestly worth $500. The appraisal value on my wedding and engagemen rings came in significantly lower than the cost because they were not the metals that they claimed they were. My engagement ring was supposed to be white gold and it was simply plated gold.

My wedding ring was supposed to be 10kt gold and it was, again, plated. The rings that were valued at $1k ended up only being worth about $350 total. My husband was ripped off by them. But I'm not ripping into them, just the fact that they're way overpricing their items. I suggest getting the setting itself appraised (not the diamond in it) and seeing just how much it's really worth. I think you'll be surprised.

[francis]

if they didnt go after the ring during bankruptcy.when they could have filed a claim.why should they be so interested now?sounds like you snooze,you loose.

[music12]

just ignore it. they are trying to scare you into paying them something. i don't believe they are going to spend the time and money to sue you for a $300 ring.

[jingle47]

Pardon my ignorance of anything post-discharge(still waiting for mine!)
But since they did not file an abuse case druing the bk process don't they have no recourse now?

[blessed]

It does sound like a scare tactic. Either ignore it or ask for a description of the ring. What did your attorney say you do?

[justbroke]

Pardon my ignorance of anything post-discharge(still waiting for mine!) But since they did not file an abuse case druing the bk process don't they have no recourse now?

Yes they have recourse. This is not a case of abuse but a case of what's called a "purchase money security interest" (PMSI) in something purchased. If you read any "department" store card, you'll see that anything you buy automatically has a (consensual) lien placed on it until it is paid off. This is known as a PMSI lien.

While they can't demand payment, the PMSI lien holder, unless the lien was avoided in the bankruptcy, can demand the ring back.

Personally, I would ask them to show the documentation, and I would call their bluff.

[jsmith1]

Well, they can ask for the ring minus the diamond back =)
And yeah, its worth under $300. Just because they sit it (and charged me) doesn't mean they can keep the diamond, I hope. So it looks like either ignore them. If they take it to small claims, I can always figure something out. At the end of the day, I would be out a max of $300, right? I am a guy, the ring is 100% no longer in my possession and I am **NOT** going to ask for it back. Or I could mail them and ask them to describe the ring.

Looks like those are my options.

[music12]

they can never sue you for the $300. they can only demand the ring back because liens (security interests) survive the bankruptcy. so if they go to court, you'd be out the ring, not the money.

but, since it looks like you no longer had possession of the ring when they asked for it, i don't think they can get it from you.

anyway, i really think you should not worry about it. if you are worried, maybe ask your bk attorney

[justbroke]

Hey, if it's not in your possession, then it's not in your possession. They can't recover it from you.