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After discharge loan company calling for furniture

New Contributor

After discharge loan company calling for furniture

My BK discharged on November 1, 2017. Today, Tower Loans called me wanting to know if I would start making payments again. Both of their loans were included in the bankruptcy. I'm assuming because they're secured with the mattress and the recliner they are allowed to seek payment or to pick up the items. What is the process I need to have them follow to pick the items up as I don't plan on keeping them? How long can they hold off on actually picking the items up..i..e. is there a timeframe in which they have to do this or are the items just on hold indefinitately upon their whim?

Thank you for any and all help with this.

22 REPLIES
Regular Contributor

Re: After discharge loan company calling for furniture

You should consult your bankruptcy attorney.

New Contributor

Re: After discharge loan company calling for furniture

I tried after TL called me at work toay and the person I've been dealing with is on vacation until Monday and no one in her office could answer. Truth is, I basically paid my atty office to file paperwork as every question I've asked them..such as whether or not I should reaffirm on the car or house, has been answered with "I can't advise you as to what to do." Thought that's part of what I paid them all of the money for, but apparently not.

Thank you for your help though.

Community Leader
Valued Contributor

Re: After discharge loan company calling for furniture


Shannon3671 wrote:

I tried after TL called me at work toay and the person I've been dealing with is on vacation until Monday and no one in her office could answer. Truth is, I basically paid my atty office to file paperwork as every question I've asked them..such as whether or not I should reaffirm on the car or house, has been answered with "I can't advise you as to what to do." Thought that's part of what I paid them all of the money for, but apparently not.

Thank you for your help though.


Yes, that's exactly what you paid them for, to give you legal advice. Sounds like a really crappy attorney, but then so was my BK attorney.

Look through your copy of the filing papers, the set you had to sign for your attorney to file for you. It lists all your creditors, if you had a car loan and/or mortgage those should be listed as Secured Debt while Credit Cards will be listed under Unsecured Debt. Where are those furniture loans listed? I'm betting under Unsecured Debt. If so, the lender had to file an objection and should have appeared at your 541 hearing to voice their objections. If they did not object and they were listed as unsecured debt than the debt was discharged and their contacting you to ask you to resume payment that is an attempt to collect a debt discharged in BK and is illegal.

 

 It's very likely they are bluffing and trying to trick you into paying by saying they will repo them - a used mattress & recliner have pretty much zero vlaue. Who wants to buy a used mattress?


Fico 08: 720/721/719 TU/EX/EQ
New Contributor

Re: After discharge loan company calling for furniture

Thank you so much for your information and I'm so sorry you had a horrible attorney as well.

I did look over the papers and both Tower Loan accounts are listed under the unescured section. Then, in their own section, under the mattess it is marked as Nonpriority unsecured claim other...Installment Sales Contract and the recliner is listed under Nonpriority unsecured claim other...Unsecured. I even gave my attorney all of the contract papers, so at this point, I have nothing to read on it as they've not returned them yet.

Tower Loan neither showed up for my meeting of creditors nor did they file anything with the court and the dispute cut off date was 10/31/2017.

They called me back this evening trying to pressure me to keep paying on the loans and when I refused they stated they'd pick up the items at 4 on Monday and I told them that was fine. Granted, it could be a bluff, but I'm afraid they'll keep calling me at work until I either pay or they pick it up. 

Thank you again for your help.

Contributor

Re: After discharge loan company calling for furniture

That almost sounds like it isn't an attorney, but a Petition Preparer.  They are not allowed to give you legal advice.

New Member

Re: After discharge loan company calling for furniture

Your attorney is not there to tell you if you should reaffirm or not, he is there to provide you the information so you can make an informed decision.


ptkdude wrote:

That almost sounds like it isn't an attorney, but a Petition Preparer.  They are not allowed to give you legal advice.


 

New Contributor

Re: After discharge loan company calling for furniture

That would be odd that he couldn't tell me either way which decision I should make with regard to a reaffirmation, yet, have in the contract that if I went against his advice, he had the authority to no longer represent me and keep all monies collected.

New Contributor

Re: After discharge loan company calling for furniture

I would think that would mean he would actually give me advice at some point or his assistant would relay the information for him to answer.

Community Leader
Valued Contributor

Re: After discharge loan company calling for furniture


Shannon3671 wrote:

Thank you so much for your information and I'm so sorry you had a horrible attorney as well.

I did look over the papers and both Tower Loan accounts are listed under the unescured section. Then, in their own section, under the mattess it is marked as Nonpriority unsecured claim other...Installment Sales Contract and the recliner is listed under Nonpriority unsecured claim other...Unsecured. I even gave my attorney all of the contract papers, so at this point, I have nothing to read on it as they've not returned them yet.

Tower Loan neither showed up for my meeting of creditors nor did they file anything with the court and the dispute cut off date was 10/31/2017.

They called me back this evening trying to pressure me to keep paying on the loans and when I refused they stated they'd pick up the items after 4 on Monday and I told them that was fine. Granted, it could be a bluff, but I'm afraid they'll keep calling me at work until I either pay or they pick it up. 

Thank you again for your help.


If you really don't care then let them take the mattress & furniture. But what they are doing is clearly illegal, they are trying to collect an unsecured debt discharged in bankruptcy. I would tell them they cannot contact you by telephone again, if they have anything more to say put it in writing and mail it to you. Tell them they are "attempting to collect a debt discharged in bankruptcy" and they should know that is illegal. Tell them if they call you again you will take legal action. Unless they are really stupid or really special scumbags they will back off. 

 

And if you really don't care if they take the mattress, at least have some fun with them. Like maybe tell them you're actually happy to get rid of the mattress  - it was used by your grandmother who had trouble making it to the bathroom, bless her heart. Smiley Very Happy


Fico 08: 720/721/719 TU/EX/EQ