Thanks to all who have responded to my BK questions at this point. It's really great to have a place to go and get some quick answers to many questions I have regarding BK. I hope I can help and give back when I can. 1. I have a BEST BUY account and have read stories about the security interest terms on this account. Can anybody explain what this would mean in a chapter 7. I have about $2000 charged and have bought various items, most of no huge value. I'm assumimg they don't want items back. 2. My wife who also is filing with me went to small claims court last month for an old Providian bill. She worked it out with the Lawyer from Providian at the court house and agreed to pay $25 a month. Now that we are filing should she make her first payment (due march 1), or will she be halled back into court? We are hiring the attorney in the next 2 to 4 weeks, and file about another 2 to 3 weeks from that point. Thanks to all...again
For questions 1, I want to hear opinions myself. My gf has about the same amount charged on her BB card, however, she purchased a $600 TV and $400 pair of Washer/Dryer. There's also the important stuff....like my Playstation 2.....that's what I'm really concerned about. For #2, I would say do not make any payments. When I consulted an attorney, he told me to immediately stop paying my cards(they where all current) There is no sense in giving Providian any money when the debt will be completely wiped clean after the CH. 7. One thing though, was the settlement in any way issued by the judge? I don't think you would want to deliberately disobey a judge's orders. If the agreement was reached between the other attorneys and you wife, and the judge just said "go ahead and you two fix it," I would definately not pay them a dime.
How big is Best Buy's used electronics department??? No, it's just not worth it for them to send someone out to take small stuff back. And what would they do with it once they got it? The only thing that could get you in trouble is if you charged over 1k or so on one card buying luxury items within 90 (or maybe it's 60?) days of filing bankruptcy. If the charges are older than that, OR less than 1k per purchase, you shouldn't have a problem.
Not sure on any answers to your questions, although I doubt Best Buy is going to come after you for those items. But like Lilly said, if you bought them and then a few weeks later filed for BK protection, it can raise a red flag for possible fraud. I would definitely run both of these questions past your attorney...that's what you're paying her for. Good luck!
To answer question #1: When I went through BK7, I had a Circuit City CC. Even though my lawyer listed them as an unsecured creditor, they asserted their security interest in several items that cost over $100.00 when I had purchased them. Basically I had three options: 1) Turn in the items to Circuit City. 2) Redeem the items, meaning that you pay something toward them, and the account is closed. 3) Reaffirm the debt. In my case I chose to reaffirm the debt, since several of the items bought on their card were gifts. Since my BK was discharged in 3/2003, I've been paying this creditor pretty faithfully. Concerning question #2, the BK filing should get that item discharged. You will definitely need to tell your lawyer that it's a high-priority item to be dealt with. One more thing: When I filed BK, I gave the lawyer a retainer before paying the fee. The lawyer, in turn, told me to have all the collection calls, etc., come to his office. Hope this helps. John
Thanks John for the reply. I will take this into account that I "MAY" have to pay Best Buy. Can I ask, did you settle on a amount or pay back the full account balance? I say that, because my account will soon be hitting with late fees, over limit fees, and promotional interest default. Thanks Mike
