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What Happens After Chapter 7 Discharge

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  • 12-04-2010, 02:49 PM
    jeg315
    What Happens After Chapter 7 Discharge
    My question involves bankruptcy in the state of: GA.

    I recieved my discharge on Nov. 1. I had an ATV financed with an HSBC credit card, I did not reaffirm on this acct. and have not heard anything. No letter, no call nothing.
    I was wondering if they now have any right to take it or what are the odds of them even trying. Im tired of wondering if they are gonna call tomorrow. the atv hasnt been ridden since i filed cause i had full intentions of surrendering.
    Thanks in advance.
  • 12-04-2010, 05:09 PM
    jk
    Re: After Discharge
    if this debt was discharged, yes, they can come take the unit at any time. If you ride it or devalue it in any way, you could be held liable for that devaluation. Things don't happen overnight. Especially given the Thanksgiving holiday and the confusion it causes with the courts, mail, and businesses in general, they may not even be aware the BK has been discharged yet.

    Have you tried calling them and asking when they are going to remove their property from your property?
  • 12-04-2010, 10:49 PM
    Betty3
    Re: After Discharge
    That's your best bet - to call & ask when they are going to come & get the ATV & see what
    they say.
  • 12-05-2010, 02:19 PM
    jeg315
    Re: After Discharge
    That seems kinda crazy. They have no idea if im riding it or if it has been burned to the ground to be able to judge if its been devalued or not since discharge as they havent seen it in 4 years since it was new & i havent gotten so much as my last bill back in June. An ATV doesnt have a title or anything in GA thats the only reason i was concerned since it was purchased on a credit card if they could even consider it secure.
  • 12-05-2010, 02:51 PM
    llworking
    Re: After Discharge
    Quote:

    Quoting jk
    View Post
    if this debt was discharged, yes, they can come take the unit at any time. If you ride it or devalue it in any way, you could be held liable for that devaluation. Things don't happen overnight. Especially given the Thanksgiving holiday and the confusion it causes with the courts, mail, and businesses in general, they may not even be aware the BK has been discharged yet.

    Have you tried calling them and asking when they are going to remove their property from your property?

    I am a little confused by this response. This was an item purchased via credit card. Therefore there is no perfected lien on the item, the item was not collateral for the loan, therefore how can the credit card company "repossess" the item?
  • 12-05-2010, 03:12 PM
    Mr. Knowitall
    Re: After Discharge
    Perhaps the assumption is that this is a store card and that there is, as a result, a purchase money security interest (PMSI)? If it was just an ordinary credit card purchase it's difficult to see how there would be a lien, but if this was in fact store financing there could be a PMSI.
  • 12-05-2010, 05:35 PM
    jk
    Re: After Discharge
    Quote:

    Quoting llworking
    View Post
    I am a little confused by this response. This was an item purchased via credit card. Therefore there is no perfected lien on the item, the item was not collateral for the loan, therefore how can the credit card company "repossess" the item?

    when the OP said the item was financed, I presumed (and admittedly possibly incorrectly) the atv was security interest for the loan. Generally, when one buys something with a CC that is not arranged such, a statement like:

    Quote:

    I had an ATV financed with an HSBC credit card,
    is out of place.

    I usually see something such as "I bought XXXX using a credit card...". I know from experience past where such a card has included a security interest in the vehicle purchased. (motorcycle loans at a place I used to work were often structured as such) It does not have to be a lien recorded on a title to cause the atv to be a security interest for the loan. Such a registered lien is merely to prevent the security interest from being sold without the underlying loan being paid. The claim as a security interest is based in the contract surrounding the loan, not the lien on a title.

    If there was no security interest, the question is moot. There are no rights to repo the unit.

    I would think the OP understood their situation a bit before asking such a question. Maybe I was wrong.

    Quote:

    Quoting jeg315
    View Post
    That seems kinda crazy. They have no idea if im riding it or if it has been burned to the ground to be able to judge if its been devalued or not since discharge as they havent seen it in 4 years since it was new & i havent gotten so much as my last bill back in June. An ATV doesnt have a title or anything in GA thats the only reason i was concerned since it was purchased on a credit card if they could even consider it secure.

    first, as you can see, it must be established if there was a security interest in the atv. If there wasn't, there is no right to repo unless the court ordered the return of the atv to the lender.

    If there is a security interest, then they do have the right to reclaim the unit. As to the condition of now compared to you trashing it and claiming it was like that: that is something you would have to deal with with the lender. I do not know if you listed this as having $XXX value for the sake of your BK. If so and it amazingly shows up as worthless, well, then either you devalued it or you lied on your BK filing.

    So, what did the BK court say to the matter of the property and was there a security interest (and it doesn't have to be evidenced by a lien on a title, it is merely a contractual obligation)?
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