Filed Bk and discharged in 6/2011. I received a call from Global Collection agency today wanting $900 to keep the furniture we bought from Ashley Furniture.
The loan originally was for $5000 but we paid $2500 before we claimed bankruptcy but Bonnie at Global stated they can and will pick up all the furniture even though we paid for half of it. They bullied us into reaffirming the loan but the judge laughed it out of court and denied it.
Do we need to send them the money or are they just trying to intimidate us?
Yes and no.
I often tell clients not to reaffirm personal property, like furniture or items bought from Best Buy, etc.
But they may indeed have a security interest. While it makes no financial sense, they can pick up the items, but cannot make you pay.
You can choose to settle with them (I would think even less than $900 would make it happen – and make sure you get it in writing). Or you can tell them to stick it.
I don’t know what state you live in… But in Florida, they cannot enter your home by force to take the items. So they would have to file an action in state court (hire attorney, filing fees, repo fees, etc = $$$$) to get the items back. All the while, they won’t be able to recoup the costs.
So it is really a judgment call on your end. Also, if they keep demanding payment, it could be considered a discharge violation, which may make them liable for damages to you in bankruptcy court.
My name is Lewis Roberts and I’m an attorney licensed in Florida and Georgia. My practice focus is consumer bankruptcy, real estate issues/closings, and mortgages. I also have Florida real estate broker and mortgage broker licenses. I am a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA), National Association of Consumer Attorneys (NACA), and a graduate of Max Gardner’s Bankruptcy Boot Camp. I enjoy helping people with decisions that impact their financial well-being.
Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.
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