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  1. #1
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    Jul 2009
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    Default 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!

  2. #2
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    Default 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.

  3. #3
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    Default Re: Colorado Snap-on Tool Repossession

    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.

  4. #4
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    Default 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.

  5. #5
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    Default Re: Colorado Snap-on Tool Repossession

    Quote Quoting aaron
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    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?

  6. #6
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    Default 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.

  7. #7
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    Default 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.
    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?

  8. #8
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    Jul 2009
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    Default Re: Colorado Snap-On Tool Repossession

    Thank you all for your attention

    Allow me to clarify a few things, yes this is an individual account not part of any business. In the discharge letter i recieved it says my debt has been discharged however any property i retain from a Purchase Money Security Ineterst may be re-possessed by lender. not exact words but you get the idea they have the right to re-possess it. the tools were marked in the BK petition as exempt and it was my feeling that if snap-on wished to object to this saying they should get the tools back they should have done so. (but that's apparently not how it works) Anyway i'm sure they have the right to SOME of the tools. In the contract with snap-on it says and i quote "You are giving a security inerest in (a) the goods or property being purchased under this Agreement and any prior Agreement; and (b) if permitted by law all other goods or property bearing any Snap-on trademark, or distributed by or through Snap-on incorporated or an affiliate" my question: is the latter permitted by law? this sounds completely ridiculous I have many many snap-on tools that were previously bought and paid for and they may have the right to take these also?? and like i said previously my $1500 scanner was in my truck over a year ago when it was re-posessed and it is part of the Agreement. Obviously they can't reposess it so can they charge me with something? Basically it boils down to... What if i don't have some of the things they want to repossess???

    Your right Aaron i did not re-affirm my debt and i know that the consequence is that they will have the right to the tools I just want to make sure that i know my rights in the matter and that they are protected. I contacted my BK attorney approx. 3 months ago he said to ignore them for now.

  9. #9
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    Default Re: Colorado Snap-On Tool Repossession

    Are you telling us that you purchased all of the tools on a single account with Snap-on Tools, or are you telling us that this was a series of independent transactions. As was previously stated, it's much more likely that they can reach other tools if it's the former as opposed to the latter.

    I am skeptical that they will invest a great deal of time, effort and money in trying to repossess; I can't predict the future, but if I were personally making the call I would write off the account rather than investing a few hundred dollars in trying to repossess some used tools.

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