Quick Answer: After bankruptcy discharge, Ashley Furniture cannot force payment but may still repossess items if they hold a security interest. The $900 demand from Global Collection may violate discharge protections, and repossession requires expensive legal action since they cannot forcibly enter the home.
“Dear Lewis,
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.
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
I write Your Money Actually most weekdays — actionable money information you will not find anywhere else, and the small decisions that compound. It is free, I sell nothing, and I take no money from any company I write about.
Do we need to send them the money or are they just trying to intimidate us?
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Bobbie”
Dear Bobbie,
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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I cannot get Ashley HomeStore to actually deliver my sofa. Ordered June 8, 2020. COVID caused them to stop productioin for a time. They are now back up & running. I understand the COVID shutdown and the delivery delays it has caused. HOWEVER!!! The piece has been in and out of stock several times in the last four months and the price keeps dropping. My efforts at contacting them via phone has only given me a large collection of Ashley phone numbers. One number was so busy that my phone’s battery died while on hold.
Worse yet is that they indicate that my item HAS been delivered and they have further charged the full amount to my card! One entity ‘can’t help because I ordered it online’ Another says they’re gonna look into it then never get back to me.
What recourse do I have in this?
Contact the Attorney Generals office in your state and file a consumer complaint.
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Lewis – good advice as always.
Bonnie – Be sure to get a good idea of how much this furniture is now really worth. It may not even be worth the $900 they want you to pay! Spend a little time on Craigslist looking at prices to give yourself a realistic idea of the value.
If you can get replacement furniture second hand (Craigslist or Goodwill) for less, then you’ll feel a lot more confident negotiating with them. It’s stressful, but in the end it’s just stuff.
Great advice as always. “In the end it’s just stuff.”Ashley Furniture is a new furniture sales outfit, they don’t want your used stuff back. If they were one of the used furniture sales rooms around then they would be more likely to come and pick up the stuff.My vote is to follow Gerri’s advice and let us all know what happens.