Anyone know if the Amazon store card is a Secured or Unsecured Debt? I have read online that some store cards like Best Buy are secured debts. How do i find out if it is or isnt?
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I have an Amazon card....I assume you mean an Amazon Chase Visa right? If that's the case, it's a credit card like any other....i know this because mine is about to get BKed out as well
Secured debt is ALWAYS referencing something physical. A car is secured because if you don't pay it, they physically take it back. A mortgage is secured because if you don't pay it, they can also take it back.
If you don't pay for credit cards, they have nothing tangible that it was secured on in the first place, hence why it's UNsecured. Best Buy cards are equally UNsecured....they tend to threaten people a lot, but that doesn't change the fact that they are an unsecured creditor. The can take your individual items (repo) if they want if you signed a seperate contract and don't reaffirm them (say, a big flat screen), but you will read around here that doesn't generally happen...they just like to try and scare you into getting some of their money back before you discharge.
General note...if it's something you can physical go outside and bang on, it's secure. Otherwise, it's not. Secure debt means there is collateral already in place for paying back the debt if you fail.
Last edited by BKlooker; 11-16-2010, 02:18 PM.Ch7 no asset Filed 11/23 341 12/21
discharged: 2/22/11
I am soooo totally not a lawyer, but i wish i had married one! Does that count for anything? -
Thank you for clearing this upOriginally posted by BKlooker View PostI have an Amazon card....I assume you mean an Amazon Chase Visa right? If that's the case, it's a credit card like any other....i know this because mine is about to get BKed out as well
Secured debt is ALWAYS referencing something physical. A car is secured because if you don't pay it, they physically take it back. A mortgage is secured because if you don't pay it, they can also take it back.
If you don't pay for credit cards, they have nothing tangible that it was secured on in the first place, hence why it's UNsecured. Best Buy cards are equally UNsecured....they tend to threaten people a lot, but that doesn't change the fact that they are an unsecured creditor. The can take your individual items (repo) if they want if you signed a seperate contract and don't reaffirm them (say, a big flat screen), but you will read around here that doesn't generally happen...they just like to try and scare you into getting some of their money back before you discharge.
General note...if it's something you can physical go outside and bang on, it's secure. Otherwise, it's not. Secure debt means there is collateral already in place for paying back the debt if you fail.
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