redeeming computers

[Taffycat]

What is the name of your state? NC

Our CH7 creditor's meeting is scheduled for Aug. 12th. We are filing for personal & busines BK.

22 months ago we purchased two Dell computers and a HP plotter printer (all through Dell) and 15 months ago (7 months later) added one more computer to the list.

These were purchased on our business line of credit through Dell. My husband was / is a sole proprietor business, unincorporated, so it was purchased as John Doe, John Doe builders.

The plotter printer & one computer is strictly used for business, one for business & personal, one for strictly personal use. (Or does it even matter?)

Our balance with accumulated interest is $9,200.00

According to Dell's website, the trade up value that "THEY" are willing to pay for ALL THREE computers combined is a mere $301.00 plus WE would have to pay shipping! On the Hewlett Packard website (though we purchased through Dell), the trade in value for the plotter (which has been discontinued) is $260.00 shipping plus $1 value for a total of $261.00??

Obviously we will not re-affirm a $9,200.00 debt with Dell. It would appear to me (though I KNOW I am very biased at this point) that the true value of the equipment, yard sale or otherwise, is $302.00 from their own lips. I realize that refurbished computers would value / cost more, but Dell would have to put money into them to bring them up to a refurbished state ready for re-sale.

The big question:

WILL they allow us to redeem the computers at their own trade in price, or will they stand strong and go for all or nothing and demand the computers back?

At the very least, after having paid well for 22 months, we should be entitled (in my eyes) to at least one totally paid off computer.

I am so agonizing over this because we do need at least one computer for our business & my son really needs one for school as we are home schoolers. We absolutely have to cut back & live within our means so buying a new one (or 2) is out of the question for now. I will not repeat past mistakes.

Advice / experience PLEASE!

Do you think Dell will even show up at the creditor's meeting? If they don't, then how do we negotiate?

Thanks in advance,
Taffycat

 

[JETX]

You seem to be treating this as a Chapter 13 (reorganization) where you get to keep certain items. However, from your post, this is a Chapter 7 (Liquidation). You will be VERY limited in what you can keep.... that is the intent of liquidation..... any non-exempt asset is supposed to be seized and sold to pay the creditors.

 

[Taffycat]

Hi Halket,

You're right, this is a CH7. I didn't intend to appear greedy. I'm sorry if I gave you the wrong impression.

We have already gladly surrendered two vehicles, a dump truck, etc. The only thing we have left is our home, some worn out furnishings & one vehicle which I am very thankful for. I'm really trying to be strong through this.

We have $2,000 in exemptions left, plus one wild card of $3,500 if needed.

So, do you think we stand a chance in keeping / redeeming the computers? Or do you think we have been misguided by our attorney?

Taffycat

 

[Ladynred]

I remember looking up the approximate value of your computers, and I don't see why you can't get them in under your exemption, especially with all that left to use. I can't imagine that Dell would want the pc's back, they wouldn't be able to resell them as refurbished for much if they did. I'd be willing to bet that they would rather take even their own trade-in value as redemption than to get nothing if you can exempt them completely and have it all discharged. I'd have a look at the Dell contracts.. is there any verbage in them about 'secured interest' ?? If they don't show up at the 341 meeting, and you add them to your exemption, then Dell will be out of luck. Those 2-yr old computers aren't worth $1000 total if you sold them at a garage sale today. Everyone wants newer, better, faster, bigger when it comes to pc's and with some very powerful machines selling these days for $499, why would WANT one that's 2 years old ????

I'd look at the contracts first.. if theres nothing about 'secured interest', then I'd do nothing .. if they show up at the 341 and you can redeem them for the $300 THEY would pay for a trade-in, then I'd do.. but ONLY then.

 

[Taffycat]

Thank you, Ladynred

Taffycat

 

[joshuaadvant]

My computers were a couple years older than yours, but I saw similar ones going on ebay for about $50-75 each. That helped get an idea of the actual "value."