Colorado Snap-On Tool Repossession
My question involves collection proceedings in the State of: Colorado
I filed for bankruptcy about 8 months ago and was granted a full discharge of my debt to snap-on tools however the contract contains a standard purchase money security interest. My question is this, in Colorado do they have the right to reposess anything branded snap-on or only the items listed in the contract?
Also a few tools of mine that are in the contract i no longer have... My truck was reposessed and my $1500 scanner was in it and stolen by someone apparently because it wasn't in there when i got my personal effects out of it. how will this affect anything??
the contract was for approx $7200 and i'd been paying about $300 a month on it for about a year should i be given a statement about exactly what would be still owed and maybe i can pay it off?? I read somewhere once that if i give them 60% of the contracts value in cash they would have to settle or something like that (may just be BS I dunno)
Any help/insight would be greatly appreciated Thank You!
Re: Colorado Snap-on Tool Repossession
all of that should be addressed within your bankruptcy. If the BK allowed for repossession of the tools, then they can take whatever the court said they can take.
Re: Colorado Snap-on Tool Repossession
Quote:
If the BK allowed for repossession of the tools, then they can take whatever the court said they can take.
Shouldn't that have been addressed prior to the discharge of the BK? After the discharge, they can't do or repo anything.
Re: Colorado Snap-on Tool Repossession
If the discharge was of the debt, but not the security interest, they continue to have a security interest in the tools. It's similar to a lien on a vehicle.
Re: Colorado Snap-on Tool Repossession
Quote:
Quoting
aaron
If the discharge was of the debt, but not the security interest, they continue to have a security interest in the tools. It's similar to a lien on a vehicle.
and should that not have been addressed in the discharge?
I would presume if it was not addressed, Snap-On maintained their security interest and repo is available to them. As such, anything listed as a secured item would be open to repo, yes? and items not listed safe, yes?
Re: Colorado Snap-on Tool Repossession
We don't have enough information to know. If this, for example, is a garage with a security interest perfected under the UCC, it's quite possible that the security interest extends to all goods sold by the vendor and not just the subset the defaulting business owner would prefer to surrender. This is a question for the person's bankruptcy lawyer.
Re: Colorado Snap-On Tool Repossession
Quote:
If the discharge was of the debt, but not the security interest, they continue to have a security interest in the tools. It's similar to a lien on a vehicle.
So if it is not specifically mentioned, you lose the secured item? Does that mean that your home can be foreclosed if security is not mentioned?
Re: Colorado Snap-On Tool Repossession
Generally speaking, you either try to keep your home during bankruptcy subject to the security interest and a continuing obligation to pay, or you acquiesce to foreclosure. You don't get to have your cake and eat it too.
Re: Colorado Snap-on Tool Repossession
Quote:
Quoting
Mr. Knowitall
We don't have enough information to know. If this, for example, is a garage with a security interest perfected under the UCC, it's quite possible that the security interest extends to all goods sold by the vendor and not just the subset the defaulting business owner would prefer to surrender. This is a question for the person's bankruptcy lawyer.
with a $7200 debt to snap-on, that would equate to about 12 wrenches so I doubt it would be for a business owner.:eek:
but I understand your point.
Re: Colorado Snap-On Tool Repossession
Quote:
Generally speaking, you either try to keep your home during bankruptcy subject to the security interest and a continuing obligation to pay, or you acquiesce to foreclosure. You don't get to have your cake and eat it too.
I understand all that, but that would require that you reaffirm the debt, which would be done prior to discharge, would it not? The same would be true of the car example given by Aaron or the case of the tools mentioned by the OP, all of that should have be handled during the BK proceedings, if I am understanding this correctly.
Here is the way I understand this: In the case of secured property, the loan has to be written down to the current value of the property.
I am not saying you are wrong, nor am I criticizing; BK is an area of law that I am not familiar with. I am trying to clarify it in my mind.
Snap on is expensive. A few years ago I checked, and they wanted almost $600 for a set of 8 nut drivers.