Not Hypothetical BK7 Question

[I_M_Hawk]

What is the name of your state? Oregon

My BK7 has been discharged as of May this year, no asset. Here is the question.

I have a revolving credit account that was part of the BK. No creditors filed anything. Now one of the creditors wants a high dollar value item back that was purchased on their credit card. Is this legal?

Here is the rest of the story. This purchase was made half on a Chase card and half on a Household Retail services (HRS) card. It was a ATV. Chase wrote it off, HRS wants it back. Both were revolving credit accounts. What is the Legal answer here?

 

[Ladynred]

If HRS filed no objections or proof of claim on this ATV, then the debt was discharged. The ONLY way they can take the property from you now is to file for a Replevin action and it may not be worth it to them to do so. I'd ignore them unless they do this.

The other alternative is to offer to REDEEM the ATV. That means you negotiate a current market value price and you pay them that money to keep the ATV. Current market value is likely far less than you paid or owed, so find out what it would go for as used.

 

[I_M_Hawk]

Thanks LadyNRed.

Another question if you please. I read on here, on this forum, something about a security interest in the item or items a company has financed. I am assuming the security interest in this case would be the ATV itself. Does this mean the debt was discharged, they can't sue me, but the ATV can still be taken?

I know there were no objections filed, but how do I know if a proof of claim has been filed?

Oh, what does Replevin mean?

Thank you for your patience and time.

 

[Ladynred]

The 'security' for the loan or purchase is the item itself, in this case the ATV. You said there were no objections filed, and you'd know if they'd filed a proof of claim. Assuming yours was a no-asset Ch 7, then the Trustee would have told creditors not to bother filing a POC.

They can NOT do ANYTHING to make you pay on that discharged debt. They CAN ask for the property back, but they can't just come take it any more. A Replevin action is something they file in your local court to allow them to take the property, and it will cost them money to do it, maybe more than its worth to pursue.