Help with Statement of Intention process

[justagirl]

I have a secured line of credit that was used to purchase a computer (which is the collateral). They are listed as a secured creditor (my only one) on my petition and I will be filing the Statement of Intention to surrender. The computer is now 5 years old and needs repairs in order to function, and I've paid over twice the value of the computer. From my investigation, the depreciation value is now zero (according to IRS publication), so it's just not worth it to keep paying or even offer a settlement.

I'm having trouble understanding the process of this. From what I read, I must file the Statement of Intention with the court, the trustee and the creditor.

Below is what I'm not sure of:

11 U.S.C. Section 521(2)(b) within 30 days after the first date set for the meeting of creditors under section 341(a), or within such additional time as the court, for cause, within such 30-day period fixes, the debtor shall perform his intention with respect to such property...

So...that means what exactly? After filing the Statement of Intention, I have to contact the creditor to make arrangements to return the computer? Or will they initiate the "repo" of the computer (and I guess they'd have to get the automatic stay lifted to do so)?

Any input is greatly appreciated!

~JAG

[poorold]

if it doesn't work and you are not using it, why not just throw it away and put the debt on the unsecured schedule?

[justbroke]

the debtor shall perform his intention with respect to such property...

So...that means what exactly?

The meaning varies. Some believe that the fact that you said you were going to redeem, reaffirm, or return (surrender) is enough... just by filing the statement of intentions. Others go further and State that you should

There's some good appellate caselaw on this, and much of it seems to point that there is really no enforcement of 11 USC 521, and that the lender can always file a Motion for Relief from the Automatic Stay as a remedy. Some over-the-top creditors have gone so far as to ask for a Motion to Compel Turnover... which is drastic, and most courts won't even grant that, when an RFS is the right tool for a creditor to use.

[After filing the Statement of Intention, I have to contact the creditor to make arrangements to return the computer? Or will they initiate the "repo" of the computer (and I guess they'd have to get the automatic stay lifted to do so)?

I'm thinking, they won't even call you. If you want to keep it, why don't you find the street value ($20? maybe) and offer to Redeem it. I mean, if you really want to keep it.

If you really want to mess with the creditor... you should state that you'll return (surrender) it. Make them spend $200+ to recover a $10 computer. LOL More than likely, you'll never hear a peep from them.

My position on this whole "perform your intention" thing, is that by you stating that you want to surrender it... puts the ball back into the creditor's hands. You don't need to call them, arrange for pickup, or anything. It's up to them to decide to come and get the item. When it's a more expensive item (car, home), they seem to do those quite easily.

The ones for computers, furniture, and other secured items... seem to expect you to do all the work. I don't think you need to "perform" anything other than not hinder them from getting their collateral. I mean... if they want the $10 5-year old computer... tell them to come and get it. LOL

[justagirl]

Thanks, JB. Your knowledge amazes me!

~JAG