furniture, is it secured debt?

[atyehong]

What is the name of your state?tx
I bought some furniture about two years ago. I am making payments regularly.
Is it considered a secured debt? If I reaffirm this debt, that means I will be making payments till its paid off on current terms (apr 23.99%)? If I don't reaffirm will I be able to keep it?
thanks for your input.

 

[I AM ALWAYS LIABLE]

What is the name of your state?tx
I bought some furniture about two years ago. I am making payments regularly.
Is it considered a secured debt? If I reaffirm this debt, that means I will be making payments till its paid off on current terms (apr 23.99%)? If I don't reaffirm will I be able to keep it?
thanks for your input.

My response:

Of course it's secured. The furniture ITSELF is the security. If you don't pay, the furniture store still owns the furniture and they come take it away - - just like a vehicle repossession.

Then, the furniture store sells it for whatever they can get for it, and then the balance of the contract, including attorney's fees and costs, are your responsibility.

However, if you declare BK, then the above residual amount, plus the fees, costs and interest, get wiped out.

IAAL

 

[JETX]

Actually, I believe the furniture is NOT considered 'secured debt' unless the specific repayment (loan) agreement includes a 'security interest' clause declaring the property to be 'collateral' (such as a vehicle, house, etc.).

Secured debts are typically debts which have collateral attached to them in the form of a lien. A lien is a monetary claim against a property to be satisfied before full ownership can take place. An example would be a Loan on your house. The mortgage company owns the house until you have satisfied the lien (mortgage) by paying off the amount you owe to them.

 

[I AM ALWAYS LIABLE]

Actually, I believe the furniture is NOT considered 'secured debt' unless the specific repayment (loan) agreement includes a 'security interest' clause declaring the property to be 'collateral' (such as a vehicle, house, etc.).

Secured debts are typically debts which have collateral attached to them in the form of a lien. A lien is a monetary claim against a property to be satisfied before full ownership can take place. An example would be a Loan on your house. The mortgage company owns the house until you have satisfied the lien (mortgage) by paying off the amount you owe to them.

My response:

How much would you like to bet, JetX, that the furniture loan agreement that was signed by our writer has a security interest clause?

IAAL

 

[atyehong]

Thanks.
If I reaffirm that I will be paying this loan after bk, will I be charged interest or just the principal amount?

 

[JETX]

My response:

How much would you like to bet, JetX, that the furniture loan agreement that was signed by our writer has a security interest clause?

IAAL

No bet!!! As I agree with you it is LIKELY. However, we have all seen cases where 'Joe Furniture' didn't care about the security issue as he just sells the note to a finance company anyway.

 

[JETX]

Thanks.
If I reaffirm that I will be paying this loan after bk, will I be charged interest or just the principal amount?

If you reaffirm the note (BTW, the creditor MUST agree to the affirmation agreement) it would be simply to affirm the original (current) debt and not a new lower one.

 

[I AM ALWAYS LIABLE]

Thanks.
If I reaffirm that I will be paying this loan after bk, will I be charged interest or just the principal amount?

My response:

You're missing the point about "reaffirming". If you're allowed to reaffirm the contract, and the furniture store agrees to allow you to keep the furniture, you will be required to reaffirm the ENTIRE contract, including interest, penalties, late charges, the whole shebang! You can't pick and choose which terms and conditions to "discharge" or "reaffirm".

IAAL

 

[I AM ALWAYS LIABLE]

No bet!!! As I agree with you it is LIKELY. However, we have all seen cases where 'Joe Furniture' didn't care about the security issue as he just sells the note to a finance company anyway.

My response:

Well, you'd THINK that our discussion on this issue would cause our writer to WHIP OUT the old contract to tell us, and to write, whether or not there's a security clause in the contract! You'd think!

But, all our writer wants, apparently, is generalized, and perhaps, inaccurate responses based upon our suppositions about his contract.

IAAL