BK & Levitz?

[JPrav]

I was wondering if I was to file a BK on a Levitz card (recent account) can they force me to give the merchandise back?

[sisflomi]

It mainly depends on what you bought and how soon before the bk you bought it. What type of account is a levitz? Credit card, installment?

[JPrav]

Levitz is a big furniture store. I got the card about 4-5 monthsd ago, and bought about $2,500 worth of stuff. The card is financed through Household Bank. I was just wondering if they would make me give the stuff back. I also have a Best Buy card and I only charged a fridge on it. About $1,000 on it. What if I told them I sold the stuff? Would they get a warrent?

[sisflomi]

Well, I can give you a recap on what happened with my friend during her bk and her accounts with bb through hhbk. She had to either reaffirm or give the stuff back. According to the bk trustee the merchandise was the security interest for the account. She had furniture and a computer, and also had appliances on the card. Instead of fighting it, she just reaffirmed, and never actually paid. They got three different judgments on her now though. Most creditors won't come after the stuff if its not worth their time. You really need to talk to a bk lawyer and find out what can happen. Also, you dont' want to charge anything I think its 60 days or 90 days before you file bk, or you will be made to pay it back. It is considered fraud if you go out and charge up the cards and file bk within 60 or 90 day time frame after ward.

[LadynRed]

The issue here is whether or not the amount of the 'security interest' impairs your exemption for personal property. IF the 'lien' DOES impair your rightful exemption, it can be avoided and there's not a damn thing that BB or HHB can do about it.

Reaffirmation is VOLUNTARY, and many judges will not approve ANY reaff agreement. There is ALWAYS the option of Redemption. You agree to pay them the WHOLESALE value of the items to keep them. That wholesale value HAS to come from an appraiser. Any idea what the retail MARKUP is on furniture and household appliances ??? Its pretty big, and retail pricing ain't what gets considered.

IF you neither reaffirm or redeem, the debt is discharged and you don't HAVE to pay. The only recourse that HHB or BB (same bank, mind you) has then is to file for a REPLEVIN to take the items from you. In most cases, its more hassle than BB or HHB is willing to go thru to get back items that they likely can NOT resell !

[JPrav]

WOW! A lot of terms that I am not to familiar with. Can you further explain the whole "Redeem and Reaffirm" stuff. Thanks.

[LadynRed]

Redeem - you pay them to keep the stuff you bought and they don't repo it. What you pay them thru Redemption is, as I stated, WHOLESALE value, NOT what you paid for it initially and NOT what you still owe on it.

Reaffirm - basically you sign a new promise to pay and its binding, the debt does NOT get discharged.


Replevin - complicated - here's a definition:

http://www.lectlaw.com/def2/q033.htm

[JPrav]

Great info! Thanks a lot for your help! :D