Advice re: Ch. 7 and will they take my engagement/wedding ring?

[despritfreya]

Can I contact Robbins Bros. now, before we file bk, to see what payment arrangements they'd be willing to make? To see if they could put us on some sort of hardship program? Or should I wait and contact them after we file?

Personally I would wait but others might have a different opinion.

Des.

[Laurie77]

Personally I would wait but others might have a different opinion.

Des.

I agree. I feel like if we do start the bk process, we would include them and submit a reaffirmation agreement and would try to find some way to continue the monthly payments with them. (either with his parents or mine paying it for us for a few months) After our case closes, then we can call Robbins Bros. and see what they would be willing to do for us. Would that be alright?

Hopefully by the time this is all over, I will have a job and we can continue to pay it as normal!

Thanks again Des!

[despritfreya]

After our case closes, then we can call Robbins Bros. and see what they would be willing to do for us. Would that be alright?

No. If you are going to reaffirm (I am not stating that you should reobligate yourself to such an expensive item) the Reaffirmation Agreement must be completely signed prior to the entry of your Discharge. You need to communicate with Robbins shortly after filing so that the proper paperwork can be generated to meet the time requirement.

Des.

[Laurie77]

Ok, that's good to know.

Is it possible that an attorney or the trustee could tell us that we can't reaffirm this debt or keep the ring because it's too expensive, even if we had a family member making the payments for us? Can either one make that decision for us?

FYI: I also have student loans that I know can't be charged off, but my parents are currently making those payments and will continue to do so as long as I'm out of work.

[despritfreya]

Is it possible that an attorney or the trustee could tell us that we can't reaffirm this debt or keep the ring.

No. Your attorney may refuse to sign the Attorney Certification which means the Court will set a Hearing on the Reaffirmation Agreement and you will have to tell the judge why you believe it is not a hardship to reaffirm. The judge, technically, has the final say on the Agreement, however, I suspect that if the payments are made Robbins won't want the ring back even if the judge says "no" to the Agreement.

Des.

[Laurie77]

I agree that if the judge rejects the Reaffirmation Agreement, as long as Robbins is getting their payment, why would they have any reason to come after the ring? The only part I'm not clear on is if the reaffirm is rejected, how is that debt then handled? Does it proceed in the bk filing and is discharged? In which case then Robbins Bros. would come after it. Or are you saying that it would technically be discharged, but we could continue paying on it after our case is closed and they wouldn't take the ring if we're making payments?

[NewPage]

We thought we could try to "refinance" it, basically, and do a balance transfer to a Visa or Mastercard. This way, not only would the interest rate be much lower, but our monthly payment would likely be less as a result. Then we could probably manage the payment. Whatever card we transfer it to, we just wouldn't include that in our bankruptcy and would continue paying it. We would not, of course, try to discharge it, as that would be fraud. Is this alright to do?

Not sure if this was addressed, but you would have to include all your debt in a BK -- no picking & choosing.

Welcome, and best of luck!

[despritfreya]

The only part I'm not clear on is if the reaffirm is rejected, how is that debt then handled?

It is most likely handled the "old fashioned way", pay and retain. You continue to pay and you keep the ring. If you don't pay Robbins has a right to the ring but cannot sue you for the balance owed.

Des.

[dumpinmydebt]

I'm just going to chime in on my experience, because it is completely different than what everyone on here is saying. Not that I am saying they are wrong, just giving you an idea of what I have experienced.

I have a ring we purchased at Rogers, using their card. I also bought other jewelry there. We owe them around $4500. They have never once asked for my stuff nor has the Trustee said anything about them needing to be listed as "secured." Of course, I sold all of my jewelry except for the ring, so that would be the only thing they could have. lol

We've only had one creditor ask for the stuff back (the cable company), and we haven't responded. We don't have what they want.

[despritfreya]

I have a ring we purchased at Rogers, using their card. I also bought other jewelry there. We owe them around $4500. They have never once asked for my stuff. . .We've only had one creditor ask for the stuff back (the cable company), and we haven't responded. We don't have what they want.

Yes, it is always a possibility that the creditor will fail to follow through on its rights. It does happen.

[wipetheslate]

IMO, let the ring go. Your ring isn't really worth anywhere near $6K. The diamond market is notoriously manipulated. I have no idea if a judge would approve reaffirmation for an item that is worth less than the loan. That doesn't sound like a good idea any way you look at it. Read up on De Beers and the marketing of diamonds. You got snookered once when you bought it--don't get snookered twice by reaffirming.

[tcreegan]

Hi all,

hey dumpinmydebt, did you list them as a creditor at all?

I imagine jewelry repossession is a pretty iffy business, they might have a higher threshold before they go after it..

....somewhat ironic note to this story is that Robbins Brothers filed a Ch 11 bankruptcy last year...approx $66,000,000 in assets and $77,000,000 in liabilities, so not too bad, closed a few store, apparently recovering nicely. Had a 30 million dollar line of open credit with Wells Fargo. ....ahhh, imagine the damage I could have done with that....

Tom in Colo

[dumpinmydebt]

Hi all,

hey dumpinmydebt, did you list them as a creditor at all?


Tom in Colo

Yes I did. And what is funny is that I have 2 credit cards with them. I listed them both.

[dumpinmydebt]

I have no idea if a judge would approve reaffirmation for an item that is worth less than the loan. That doesn't sound like a good idea any way you look at it.

I would highly doubt it. And I would bet it wouldn't even make it to the judge because the lawyer wouldn't sign off on it.

I agree it wouldn't be a wise decision when you could use that money to buy a different ring. I understand the sentimental value, believe me, my ring is the only jewelry I have and the only thing that we didn't sell. But I wouldn't pay for it to keep it. I'd just save up to go buy another ring someday.

[bk2009]

List it in the BK. Hope that they don't ask for it back. If they do, give it to them and save up (CASH) and buy another one. Maybe buy a used one at the pawn shop. ;) You can always buy a nice diamond at the pawn shop and have it reset into something more of your taste.