Item I owed on was sold...

[rae]

Is jewelry considered a secured debt? If she had a credit card and she failed to pay on it, would it matter if the original purchase was for a ring? I can understand if it were for a car or a house, but I didn't realize jewelry was considered a secured debt. So does that mean all the big ticket items at BB and other stores are secured? I've never heard this. Or maybe just some of them are?

[LoadedGuns]

Is jewelry considered a secured debt? If she had a credit card and she failed to pay on it, would it matter if the original purchase was for a ring? I can understand if it were for a car or a house, but I didn't realize jewelry was considered a secured debt. So does that mean all the big ticket items at BB and other stores are secured? I've never heard this. Or maybe just some of them are?

Ever hear of a security clause in a contract? Sears, Best Buy have been doing it for many years.

[rae]

I've never signed one of those--it sounds like I was lucky.

[AngelinaCatHub]

I've never signed one of those--it sounds like I was lucky.

You might have and never known it. When was the last time you got out your kid's microscope and read the CC agreement. 'Hub

[rae]

I'm somewhat paranoid about reading contracts. :-) But even if I slipped up, I think that they would have mentioned it by now if they had planned on repossessing something. I don't have a lot of electronics and I've never been one to buy jewelry. Maybe their desire to reposess depends on how long ago the purchase was? I would think 2nd hand electronics would be almost worthless to a creditor. Jewelry probably holds its value better.

[catleg]

All kinds of unenforceable stuff is written into contracts all the time.

[frogger]

All kinds of unenforceable stuff is written into contracts all the time.

I agree, however this can vary by courts.

With my own eyes and ears, I saw a court case in my area in which something clearly illegal was written into a contract.

The contract was signed by both parties, and when the case was heard, the illegal clause in the contract was upheld by the judge.

I questioned the judge (knew him), after the case and asked for an unofficial opinion due to the nature of the case, and he told that regardless of the legality or not (under state law), if it was in a signed contract, it was enforceable.

Your mileage may vary.

[catleg]

Which is why going before a judge is always a crapshoot.

[Scooprack]

Do you have debt other than this few thousand dollar ring? Although I don't know your whole financial situation, there are likely better alternatives than filing BK if this is the only debt.

Oh no...my husband and I have about $40,000 worth of debt. We had been paying just fine but he's a realtor and money has been tough the past 2 years. His family is mostly in the same business and are trying to file as well.

[AngelinaCatHub]

Oh no...my husband and I have about $40,000 worth of debt. We had been paying just fine but he's a realtor and money has been tough the past 2 years. His family is mostly in the same business and are trying to file as well.

Wow. Depending on their ages, they need a new career. There is an easy way to make a lot of money, but you have to put up some money first.

(sounds like a scam right?)

Go back to college and get a bk lawyers degree, pass the test, and you will have a job that will give you much hope and change your life. 'Hub

[Scooprack]

Wow. Depending on their ages, they need a new career. There is an easy way to make a lot of money, but you have to put up some money first.

(sounds like a scam right?)

Go back to college and get a bk lawyers degree, pass the test, and you will have a job that will give you much hope and change your life. 'Hub

My husband was going to go to school with the money he was going to get through real estate, and I was going to be the bread winner while he was doing this, but the market has been dry out here.

How can we afford school now? With our bad credit and going to file bk in near future, could we even qualify for a loan??

Seems like we've reached a dead end right now...but a very good suggestion. I LOVE OUR BK LAWYER!! HE IS AWESOME BTW!!!...never thought I'd say that about a lawyer lol.

[Scooprack]

I have a question...It just occurred to me...Why would this jewelry store suggest that I sell the ring on ebay (see original post) rather than try to repossess the ring? Wouldn't they recoup their loss better that way?

I had taken my ring to a couple of places to see what I could get for it a while back and I got verbal quotes in the hundreds (lowest offer was $119 and highest was $500). I had compared rings similar to mine on ebay and there is no way I would have gotten any where near what I owe this store.

Why would they suggest I sell it on ebay? Is that legal of them to suggest that?

[catleg]

I have a question...It just occurred to me...Why would this jewelry store suggest that I sell the ring on ebay (see original post) rather than try to repossess the ring? Wouldn't they recoup their loss better that way?

I had taken my ring to a couple of places to see what I could get for it a while back and I got verbal quotes in the hundreds (lowest offer was $119 and highest was $500). I had compared rings similar to mine on ebay and there is no way I would have gotten any where near what I owe this store.

Why would they suggest I sell it on ebay? Is that legal of them to suggest that?

They don't care if you sell it at a pawn shop, as long as you get enough money to make the next monthly payment, that particular collector will be happy. Next month? Who cares about next month.

The concept of "security interest" in consumer jewelry is completely negated by the "I lost it" concept.

Thus, what may be a secured debt (unlikely IMHO) still has to be treated as unsecured debt for collections (and legal) purposes.

Think of some other situations this could apply to: laptop computer, LCD TV (broke/stolen), etc.

Not to advocate dishonesty but it is what it is.

[flyinbroke]

OK here is something that happened 20 years ago:

I got engaged and the ring my then betrothed bought me was out of his reach alone so I cosigned. Big mistake. We were both military so they had no problem with my then paltry salary.

Fast forward about 14 months. He is stationed south as an instructor, I am stationed north and I have not heard from him in about five months so I assume we are over and put the ring away. I find out that he had met someone else, and figured that was the end of it. Although I really wanted my platinum and gold bands back, I kept the diamond.

Or so I thought.

I was in my flight suit, about to leave on deployment for three months and I get the mail. THere is a bill from the jeweler. I have a minimum payment of somewhere around 1000 bucks. Seems that my ex-fiance stopped paying on the rings some time the year before. All the while my parents are paying a fortune on my dream wedding, my dress deposit, the country club for the reception...and he was talking to me like we were still on and he was not knocking boots with one of his students.

I told the jeweler I had no money but still had the diamond. They said they could accept it. However, the account could not be credited until they verified its authenticity. I had no problem with that. A couple of months later I got a PIF from them. I told them to close this account, or remove my name, or whatever it took to get rid of this guy. They happily did (I would get another account with them a couple of years later, they were great to work with.)

I got the JAG to go after the ex for my rings...found out that he had pawned them or something. But it wrecked his career and blew the lid off of his taste for students. Karma can be a b**** and this one had puppies.

Bottom line....the jeweler did have a secured interest and glad my diamond covered it. Then again, this was a mom and pop place, a sort of local chain. Not sure if they are around anymore.