exemption question (sears)

[DYLAN150]

First, I am not filing for bankruptcy at the present time. I owe sears on my T.V. and some other furniture.
I am current with them. Doesn't Sears hold title for these things until they get paid off? In other words, I want to claim these possessions as having a lien holder (sears) in case I get sued.

[IamOld]

dYLAN, can you find your original Sears card agreement? Or get one online or in a store? I venture to say it'll say that they hold a security interest in what you purchased. If yes, on paper, they do hold a security interest.

[LadyInTheRed]

Based on a quick Google search, it appears that Sears does take a security interest in things you purchase on the card. Check the credit agreement to be certain.

Your creditors are very unlikely to want your used T.V. and furniture anyway. In fact, Sears probably wouldn't even come to get it if you defaulted on your debt to them. Sears will threaten you with repossession to try to get you to pay the debt and a judgement creditor may threaten to come get it to get you to pay the judgement. But, the expenses incurred in picking it up and selling it doesn't make it worth the trouble. It's not worth enough.

In the unlikely event that judgement creditors do to try to take your stuff, don't forget that your state's property exemptions apply.

[Freddy03]

I included 2 Sears accounts in my BK. Both had $3k balances. We did buy a new TV on one card about 1.5 years before filing. Sears has not said anything about wanting the TV back.

[DYLAN150]

LadyintheRed. Yes, in Washington state the exemptions are $2700. I am pretty close to that but with Sears being a lien holder it's basically a non issue, hopefully.