Confused - Refirming a debt ??- Jared

[Anonymous]

Good Day everyone! 

I filed BK7 on July 7, 2015 and have my 341 meeting on Wednesday, August 5, 2015. However, today I received a letter from STERLING JEWELERS INC. dba JARED GALLERIA OF JEWELRY to reaffirm the debt or to make surrender arrangements. Amount of the debt subject to reaffirmation agreement is $1,219.56. 

Repayment Schedule:

First payment in the amount of $62.67 is due August 25, 2015. Then the payment Schedule will be 24 payments in the amount of 62.67 with a fixed rate of 21%. 

I am a little confused as to why include a debt in BK if in return I still have to pay for it?

So, my questions are as followed:

1. What does this even mean "to reaffirm" a debt?
2. If I have to pay the amount owe; then why was it included in the BK?
3. What happens if I don't reaffirm? 
4. How will this affect me in the future or my credit report?
5. Do I have an option? 

BTW, I don't have most of the items because they were gifts brought throughout  2013-2015.

Please advise as necessary, thanks.

[Pway]

I would consult with your attorney about this one.  If I am not mistaken this is a violation of the bankruptcy stay code.  They are trying to collect on a debt that should be included in the list of creditors.  However, they have been given notice of your bk filing.

http://www.nolo.com/legal-encyclopedia/reaffirming-secured-debt-chapter-7-bankruptcy.html

[0REDSOX7]

They have what is known as a security interest in the items you bought.  Basically, if you want to keep the items you bought, you either have to keep paying the debt (either by reaffirming or not) or they will ask that you surrender the times you purchased with their credit card.

I agree that they should have have reached out to your attorney, but, when you filed your petition, there should have been a "Statement of Intentions" filed for this secured debt - what did you put in that section?  Reaffirm?  Redeem?  Surrender?  Ride-Through?

[Anonymous]

I haven't filed the petition, yet. I spoke with the Attorney Assistant and he advice to reaffirm if I want to keep the misc jewelry or pay what I owe them. But I don't know what to do?

Should I reaffirm the debt or surrender the items which I really don't have much to surrender. As some of the items were gifts purchased in 2013. But what's the point of including it this debt in the BK7 when I have to pay the amount owed in full? 

If I reaffirm how will this be listed on my CR?

If, I DON'T reaffirm how will this affect my credit?

[ezdriver]

Ignore it. Your filing includes all oustanding debt as of the filing date.

[ezdriver]

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@Anonymous wrote:

I haven't filed the petition, yet. I spoke with the Attorney Assistant and he advice to reaffirm if I want to keep the misc jewelry or pay what I owe them. But I don't know what to do?

Should I reaffirm the debt or surrender the items which I really don't have much to surrender. As some of the items were gifts purchased in 2013. But what's the point of including it this debt in the BK7 when I have to pay the amount owed in full? 

If I reaffirm how will this be listed on my CR?

If, I DON'T reaffirm how will this affect my credit?

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You wrote "I filed BK7 on July 7, 2015 and have my 341 meeting on Wednesday, August 5, 2015". Now you are confusing me.

Did you file or not? How could you have a meeting scheduled witout filing? Something ain't right. Please clarify.

[ezdriver]

Your attorney's advice is wrong. Once you file a petition, the trustee controls who gets paid what and which assets will be liquidated in the process.

[Anonymous]

Ezdriver, 

I filed BK7 on July 7, 2015

The 341 meeting is this Wednesday, August 5, 2015.

I received the letter to reaffirm with Jared for $1.2K, today. I hope this clarifies the confusion...!?!

[Anonymous]

If it were me, since the meeting  is this week.  I would just take the letter with me and ask the trustee.  If you are able to do that.  

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@Anonymous wrote:

Ezdriver, 

I filed BK7 on July 7, 2015

The 341 meeting is this Wednesday, August 5, 2015.

I received the letter to reaffirm with Jared for $1.2K, today. I hope this clarifies the confusion...!?!

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[bstone]

There would be no presumption of abuse since the charges were from 2013, I certainly would not reaffirm this debt, if at all possible.

Talk with your attorney, this is why you pay them.  I would think you should be able to turn over what items you still have possession of and the remainder would be discharged.  If they were all gifts, then tell your attorney that and likely nothing will come of this.

As has been said though, ultimately the trustee has final control.  However you need to address this with your attorney prior to the 341 meeting, don't surprise them with this at the table, and it's certainly not something you should bring up to the trustee at the same time.