What do you think?

[apie1]

What is the name of your state? IL

Bankruptcy...Bankruptcy...Bankruptcy...anyways!

As in my previous threads...and all of them answered (thanks bigun) long story short my cousin filed for chapter 7, a no asset case under the old law. She has a secured personal loan which she has mom as a co-signer (mom being the primary on the loan). The personal loan required household collateral (which none of the collateral is hers, all her mom's property). She has missed no payments and is still paying the monthly payments. She plans on re-affirming the loan and has not yet had her 341 meeting. Lawyer stated the household items are not considered assets in her bankruptcy case. Some questions...

1.) Is the lawyer right in this case?
2.) If she re-affirms the loan (which seems the company will let her) will it even matter?
3.) Can this collateral (even though none of it is her's) be used to pay off other creditors?
4.) Do you think to trustee will even bother?

Any answers would be appreciated...

 

[JETX]

1.) Is the lawyer right in this case?
2.) If she re-affirms the loan (which seems the company will let her) will it even matter?
3.) Can this collateral (even though none of it is her's) be used to pay off other creditors?
4.) Do you think to trustee will even bother?

Yes
No
Yes
Who knows??

 

[apie1]

Thanks for the information JETX, I apperciate it. So basically if the lawyer is right saying that they are not considered assets and that the loan is re-affirmed, then the collateral (IN A SENSE) is protected just so as long as the payments are kept up on time?

Also to answer number three, is that a general answer to no asset cases or is it relating to her case? I am just a little confused that if they are not considered assets and the loan is re-affirmed, how could it be sold to other creditors? I am just dumbfounded to this whole sitauation, sorry....

Im just wondering if the collateral were to be sold, would it only be sold to the creditor that has given the loan for collateral?

 

[bigun]

No asset case in bk means, there are no assets beyond what your state allows for an exemption.
I think your lawyer is correct in that sense. Creditors don't want 2nd hand consumer goods. They'd rather have the money and if your cousin keeps paying, they're willing to let her keep the stuff.