cosignor's nightmare

[patc47]

My state is Florida (he filed Chapter 13 bankruptcy in Georgia)

I stupidly cosigned with my boyfriend 5-03 for him to buy furniture with the agreement that he would make the payments. He verbally agreed. We did this in the state of Georgia where we purchased the furniture. I live in Florida now. He assured me he was making the payments as agreed. Later I get a call from a collection agency wanting their money saying NO payments have been made. And if that wasn't bad enough NOW he has filed CHAPTER 13 bankruptcy. I received paperwork from his lawyer naming me as a creditor . Also the furniture company as a creditor with $0 to be paid by HIM.

I got a form B10 with the letter. I want to fill it out but, I have no documentation to accompany it. I have a copy of my credit report showing it was a charge-off and his name is on that with a amt of $4620 still owing.
I tried to contact the furniture company to get a copy and they said to go through the collection agency. But it's been sold and I don't know who to contact or even if I want to contact them. Do you think if I wrote a letter to the judge explaining along with the credit report and his verbal agreement to pay would help? What do you think my chances are of the judge not letting him dump this whole bill on ME? Is there anything else you can suggest I do? Please Help me if you can
Thanks Pat

 

[Ladynred]

Without documentation, its going to be pretty tough to claim that HE owes YOU any money. If you didn't get the agreement in writing, you really have a really weak case for a claim against his having this debt discharged.

The collection agency isn't going to have any documentation, they don't buy the backup papers for debts. Was this a furniture chain store or a local retail store ??

 

[patc47]

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Without documentation, its going to be pretty tough to claim that HE owes YOU any money. If you didn't get the agreement in writing, you really have a really weak case for a claim against his having this debt discharged.

The collection agency isn't going to have any documentation, they don't buy the backup papers for debts. Was this a furniture chain store or a local retail store ??

But isn't the fact that its' showing on my credit report that it's a JOINT acct and we're BOTH responsible for it. Hey I'm just wanting him to pay his part !!
Wouldn"t a judge see by my credit rport and him puttin me and the furniture co down as creditors that he is acknowledging the debt? Isn't that documentation enough? He has listed in the bankruptcy the "furniture is abandoned" no it's not ! it's sitting in house in Georgia. What other documentation would I need? He's not DENYING he owes the money he just wants me to pay it all! (yes it's a chain store)

 

[patc47]

I'm sorry if I didn't enter my reply correctly befor I'm not too computer literate yet. so I'll answer again.
If my credit report shows it was a joint account and has his name on it the judge is going to see he is also responsible for the debt as well as me. Why do I need proof of that? He's not denying he owes the money he just wants to dump it all on me!!! After all that's why he put me down as a creditor right?
He also put the furniture company down as a creditor so he's acknowledging that he owes the money he just dosen't want to pay his part. What other documentation do I need? Isn't that proof? I just thought by responding on this form I was sent and by adding to it I didn't feel it was fair for him to be totally relieved of this debt and it all be transferred to ME!!
Another thing the furniture is listed on the bankruptcy form as "abondoned"
No it's not it's sitting in is house in Georgia!!! Do you still think I need other documentation And If so what kind? And yes it was a chain store and they would give me no info.

 

[Ladynred]

Ok, I see your point. However, you said he filed CH 13, that doesn't mean he gets out of all the debts and if its SECURED - and I'll bet it is, furniture stores do that - then he can't just dump it on you. Secured debts in CH 13 MUST be paid at 100%. Call the corporate offices of the store chain and ask them if they retain a security interest in purchase made at their stores. In that case then, as the primary signer on a SECURED debt, I don't think he will be able to get out of it and you need to use that on your objection.

Unfortunately, as the co-signer, you are responsible if he doesn't pay, but in a Ch 13, you DO pay on your debts, especially secured debts. Most unsecured will only get some percentage paid back. It all depends on the amount of disposable income he's got and how long his plan is.

As for the property listed as 'abandoned', I'd have to see the papers, but I doubt it actually means the furniture got left somewhere.

 

[patc47]

Thank You so much !! I just assumed furniture would be "unsecured" the Form B10 that I'm trying to fill out ask these questions so if the furniture store says "yes" do I check secured claim ? And can I call the store in Georgia where the furniture was purchased? would they knowthe correct answer about "security interest?" And if not how do I find the Corporate Office phone number? (remember he's filing bankruptcy in Georgia) Thanks Again.

 

[Ladynred]

Yes, if the furniture store says they hold a security interest in purchases, then it IS a secured claim, but YOUR claim isn't secured, the furniture store's claim would be secured by the furniture. I'd be willing to bet he's listed the furniture as a non-priority unsecured claim - and that would be incorrect.

You can call the store, sure, but since they've already given you a hard time, just call and ask the question, don't identify yourself, and simply ask as if you're looking to buy furniture and want to know the answer.

How do you find the corporate offices ?? Which furniture store is it ?? That info is relatively easy to get.

 

[patc47]

Well I did as you suggested. I called the furniture store and ask the QUESTION Do you retain a SECURITY INTEREST in purchases made at your store? They said they didn't know. So I called 2 other stores. The one said the furniture store is paid off when the buyer is approved for an HSBC/Rhodes acct. That's a credit card that you can only use at their stores.
She said they are out of it because they are paid off at the time of purchase. She said I need to call the Recovery Dept. of the collection agency that has the acct. I don't know who it is now as they have not notified me yet in writing yet. Should I try to find out and call? Or should I just fill out this proof of claim form B10 and send it in? Other than filling out the form what can I say to "PLEAD" my case? Thanks Pat

 

[Ladynred]

Ahh.. ok, Rhodes Furniture. They're in bankrutpcy themselves, they're closing stores all over the country. Household Bank is behind their cards. In reality, its NOT RHODES that he's including in his bankruptcy, its Household. It is, then, an UNSECURED debt, the person at Rhodes is correct, Rhodes gets paid for the purchase by HHB and you pay Household.

You should just file your proof of claim then, but I'm not sure how you're going to prevail. He will have to pay all the creditors that file claim in his Ch 13, but unlikely they'll get paid at 100%.

 

[patc47]

cosignors nightmare

On the Bankruptcy Chapter 13 Plan form he listed Rhodes,Inc not Household bank. So how can they respond to this bankruptcy claim? Should I call household bank and inform them he's filing bankruptcy? Or should I include that in my statement with my claim form? Or then will household start really coming after ME? What if i tell them I DISPUTE this debt won't they have to provide me proof that I signed the papers? Do you think he was trying to pull a fast one by listing Rhodes,Inc instead of Household Bank? You know to squeak by without the real creditor being listed!! Thanks Again pat

 

[Ladynred]

I guess the question is - which address did he use for Rhodes listed on his creditors matrix ? The bill gets sent to HHB, not the Rhodes store, so Household most certainly will know of the BK if that's the address he used.

As far as them coming after you, they CAN and likely will, you co-signed for him, that puts you equally on the hook. You CAN dispute it.. make them produce a your signature on the application, but if its not all that hold, they will be able to produce it.

I know we all try to be NICE and help our significant others and friends, but its really NOT a good idea -ever. Even married couples, unless you can GUARANTEE there will never be a divorce, joint debts are a BAD move. I've seen hundreds and hundreds of posts on joint, co-signers, etc. -- it almost always has a BAD ending.