I am still paying one creditor

[eddiep]

I have a small balance on my Dell account that I am still paying on. I am going to file in April. I am only paying minimum payment of $20/month. I am afraid that they can repo my computer (purchased in April 2008) if I stop paying and I don't want that line of credit closed because I am still under warrenty and I will definately need to get my daughter a computer in the next year. Will I get in trouble for this? Can I reafirm this loan like my car and mortgage?

[lrprn]

Since Dell very likely considers your loan secured by the computer, there's no penalty for paying on a secured loan before filing.

Even if the loan was unsecured, at $20/month for three months you are nowhere near $600 - the maximum total amount you can pay a non-secured creditor in the 90 days before filing before your trustee may decide the money you paid them was a preferential payment and ask for the money back.

Keep in mind that even after you file, Dell may threaten to come after the computer since you will be discharging their debt. Don't fall for it. They don't want your computer even now - they just want money.

Ask your lawyer if there's any risk not paying Dell right now. Chances are there won't be and you can put that money to better use elsewhere.

[eddiep]

Can I not discharge this debt? I want to keep the account open. I only owe them $250.

[StartingOver08]

If you only owe $250 and you want to keep the computer and possibly buy your daugher another one - why don't you pay it off? I think the preferential payment issue applies for payments of $600 or more within 90 days of filing (as pointed out by lrprn). Once you file, the account will be closed anyway - even if you have a zero balance (most likely). JMO.

[Flowers]

I can not imagine that the Dell is a secured loan.

How are they going to get the laptop back anyway? Send the sheriff?
You could even say it was stolen or lost, it happens everyday.
Talk to your attorney. My lawyer had told me all creditors had to be treated equally. meaning one is not above another in line for payment.

[parsoc48]

Our balance with Dell was $1200; at some point $460 was stated as "secured"; in the end, the trustee declined to pay them at all...have no idea what went into that!
Interesting how things work out in this BK business. I agree with Starting Over...that account is toast...nothing survives! Although I guess you could try paying them off and at least starting with a zero balance, if you can afford it.

[2Bshinyandnew]

I have a small balance on my Dell account that I am still paying on. I am going to file in April. I am only paying minimum payment of $20/month. I am afraid that they can repo my computer (purchased in April 2008) if I stop paying and I don't want that line of credit closed because I am still under warrenty and I will definately need to get my daughter a computer in the next year. Will I get in trouble for this? Can I reafirm this loan like my car and mortgage?

I think you will be fine if you continue to pay Dell $20/mth for the computer, if that is what you chose to do. You will not get in trouble.

The way I understand it, even IF this is a preferential payment, it would not be the debtors problem, it is between the trustee and the creditors. The only time preferential payments become an issue for a debtor is when the payment was made to a relative/insider who may get PO'd when the bankruptcy trustee goes to "undo" the payment and distribute it evenly among all the creditors. The trustee does not look to the debtor to get the money back, the trustee looks to the creditor to get the money back.

[catleg]

There's no sense trying to keep that account open thru BK. As soon as the bank notices you've filed BK it will be closed, period. Regardless of balance, no balance, paying, not paying. Since it's only 250 you might want to pay it off, but you shouldn't have false expectations.

[OhioFiler]

Save the $20 each month. They'll never come to get a one year old computer.