secured creditor

[johnalan]

What is the name of your state?GA

About six years ago I bought a laptop computer, but sold it about four years ago but continued to make the payments. I recently have filed bankruptcy (7)and the creditor showed up at the hearing and they were told I no longer had the computer. They filed no objections and I have since received my discharge. A month after the discharge the creditor wrote me a letter wanting me to surrender the laptop. What happens since there is nothing to surrender? Can I pay fair market value which is about $50-100.00 dollars? Thanks

[Ladynred]

I wouldn't do that right off the bat, though you certainly can offer to redeem the laptop for current market value. CMV for a 6 year old laptop isn't much money at all.

They can't take what you don't have and in order for them to do ANYTHING post-discharge, they have to file for Replevin with your local court. A replevin action will cost them more than the value of the laptop, so its not likely they will follow thru. If they do, then you can offer to redeem at CMV.

I'd ignore them for now and wait and see if they attempt replevin. Its not all that common, especially for seriously devalued computer equipment, they know its not worth squat. They like to rattle swords though, scaring people into paying is typical because people don't know their rights or the law.

[johnalan]

Are they not in contempt of court for contacting me in regards to this? They came to the creditors meeting and were told I no longer had the laptop. They did not request a relief from stay, nor filed an objection, and they were informed of the discharge. Curious as to why they would pursue this after the discharge?

[Ladynred]

Not unless they ask you for the money. The laptop was security for the debt, and you did not reaffirm, the debt was discharged. Legally they can ask for the 'security' back and that's what they're after. Most of the time they will wait until after discharge so they avoid any charges of contempt. This wouldn't be BestBuy by any chance would it ? They're bad for making demands for OLD equipment back - stuff they can't possibly sell.. but they like to scare people, probably hoping they'll pay to keep the stuff.

[johnalan]

Yep, it's Bets Buy!! By chance if they filed for Replevin, what can happen? If they don't file and they keep hounding me what can I do?

[Ladynred]

There really isn't much they can do - they can't take what you don't have. For now I'd ignore them. They know that old of a machine isn't worth diddly, they could never sell it. They are likely hoping you'll offer to pay something to redeem to make them go away.