Right to Cure (Furniture) following Ch. 7 discharge

[chd3143]

This isn't an entirely new topic, but I haven't been able to find a solid answer to some specific questions. I have about $4,000 in miscellaneous purchases from Nebraska Furniture Mart -- a notoriously nasty collector. Most furniture companies use this period following discharge to fish for money -- I'm aware of that. I've read a fairly significant number of testimonials that NFM will go after you to repo whatever they can (following replevin). In our case, much of what we purchased is no longer in our possession. We moved to an entirely different part of the country and reduced a lot of things that were probably financed. A few things were gifts. A few things were damaged and tossed. A computer died. You get the point. A few things are in our possession. For arguments sake, how exactly do they repossess what is, in essence, air? They can't collect the debt. Worst case, we end up in a debtor's exam. Still, I'm not sure I've ever seen an asnwer to this. Our instinct is to write them a letter telling them what few things we possess -- then give them a date on which they're free to schelp out to central Idaho and pick it up. Opinions?

[justbroke]

I wouldn't initiate a conversation at all. If you did have possession of a good deal of the property and the property had lower value than purchase, I would have done a redemption. A redemption is where you pay the current market vlaue for something and the creditor is forced to take that amount.

As to whether this company will try to serve you in your new place, domesticate any judgment, and then execute on that judgment (via a replevin), I can't tell you. In fact, no one can even speculate as to what the creditor would do. If the furnishings were "newer" (purchased within 1 year of filing), then a creditor may be "more" likely to pursue repossession or a judgment. Remember, a judgment can stay with you for some time and they can get a writ of replevin and/or a writ of garnishment (if allowed in your State).

They may not even bother because they will see your address on your Petition and may decide it's just not worth it. If they do contact you after discharge, then you can tell them to come and get X,Y and Z at their convenience in Idaho. You do not need to make the effort. I have had furniture with RoomsToGo and I never heard from them after my discharge (and I had purchased a $$$ of furniture from them on credit).

[chd3143]

You're probably right about not initiating contact. Although, since we filed and discharged Chapter 7, they're not entitled to any money. They're only entitled to pursue goods they believe you have. Garnishment or cash judgments aren't a legal option for them. I think that's why I'm curious about "likelihood" -- is it really worth their time/money to come after old furniture and non-existing DVD players? I've heard that they can be nasty for the sake of nasty, but ... I'm not sure how factual that is.

[justbroke]

Pursuing lawsuits or other remedies may not be available to them. Whether they threaten such is another issue (they technically can't threaten such). I was just worried that they'd would attempt such things as seeking remedies under State law and try to garnish. Nothing "technically" stops them, except you exerting a claim of bankruptcy. I'm surprised by how much people let creditors do post-discharge. It's mind boggling.

I would not worry about the "reputation" of such a creditor. I would worry about what they actually "do" or attempt to do in your specific case. If they do something that violates the permanent discharge injunction, then you should pounce (by re-opening case and pursuing sanctions). This type of creditor will NEVER learn until they are, well, spanked by a bankruptcy court Judge. (One of these types of creditors was ADT Security until they were spanked by a bankruptcy judge. Another was Verizon that was spanked by a Florida bankruptcy judge to the tune of $80,000 for keep calling a debtor after filing. Bank of America has been spanked several times. Some of them just don't get it.)