Filing today, but questions since the lawyer confused me.

[Crawf]

Good Day folks,

Finally filing after a year of non payments.


Upon reviewing our CCs, our attorney said that the HHGregg card(electronics store) and Zales card are actually secured debt.

We sold the items we bought with these cards so we could pay for our new baby's furniture, ie crib, diapers, cloths, carseat.

Anyone have experience with these two cards?

Thanks

[SunshineGal]

A lot of store cards have a "Purchase money security" interest built into the loan. Best Buy is famous for this, and will usually send a letter to the attorney's office stating that you need to reaffirm or give back the items. Do a search for "Best Buy" and you'll see that generally, they just want to scare you into paying, they don't really want the items back. Be sure to tell your attorney that you no longer have these items, how much money you sold them for, and that you used the money for baby furniture. I would think worst case you could work out a settlement with them but I highly doubt it will come to that.

SG

[tcreegan]

Hi crawf,

Don't pay them a dime. Tell your attorney the items are long since gone and you have no intentions of settling or reaffirming. Your attorney should know this situation well and be able to handle it on the paperwork. (mark 'reaffirm' on the statement of intentions and never sign any reaffirmation papers.)

Unless these are 4-5 digit items with full resale value (thinking jewelry on the Zales card) the standard procedure is to try to threaten/intimidate you into coughing up some cash. When you don't roll over, they go away.

And even if they are 4-5 digit full resale value items, don't do anything until unless they file a 'motion for relief' If they file a motion for relief they are actually going to try to get their item back and then you settle. If they don't file the motion for relief, they aren't coming for anything no matter what they said in that letter.

Should be a non-issue, don't give in and cough up cash, it just encourages them...

Tom in Colo