.jpg)
Reaffirmation in this situation?
Toss it. American General is a finance company and a debt buyer -- they
often don't even know what the property those letters they send is in my
experience. Does the letter say what is financed -- I have had ones that
just say the word "property" and Am Gen doesn't even know what kind of
property. Call and ask "What property exactly are you securing?" for fun.
They don't want old furniture. It's AIG -- you and me and everyone here
paid for that dang company 2x over, we don't want the old furniture either.
(jk -- except American General really is part of AIG).
I would still talk to your client, but the only furniture companies I have
heard of taking furniture are Nebraska Furniture and some Spanish-named
company.
If they do call your client, tell her to tell them to come and get it but
that it is very well used and to ask them if they mind cats?
1489 E. Colorado Blvd. #207
Pasadena, CA 91106
(626) 507-8090
"Bankruptcy, Michael, is nature's do-over. It's a fresh start, a clean
slate."
"Like the witness protection program!"
"Exactly."
>
>
Toss it. American General is a finance company and a debt buyer -- they often don't even know what the property those letters they send is in my experience. Does the letter say what is financed -- I have had ones that just say the word "property" and Am Gen doesn't even know what kind of property. Call and ask "What property exactly are you securing?" for fun.
The post was migrated from Yahoo.
I had a client reaffirm with American General. Zero percent is a good deal. My clients really liked the couch so the wanted to reaffirm. I think you are on the right track with 2 or 3.
Holly Roark
>
> Hello all -
>
> I have a client who didn't tell me that she had purchased her furniture with a security agreement. The financing company, American General, now wants her to reaffirm the debt on the furniture, and they have sent me a proposed reaff agreement. This agreement says that the remaining debt is $1400, and the FMV on the furniture is $600. At least they've lowered the interest rate from 21.9 percent to zero.
>
> As I see it, she can 1. try to do a ride-through, in which case she's paying 21.9 percent interest on the furniture, 2. reaffirm and get a better deal (zero interest), or 3. tell American General to come by and pick up the furniture, and get something better and cheaper on Craigslist. I intend to advise her to do either 2 or 3, depending on her preference.
>
> Any other things I should be thinking about, but am not?
>
> - John Faucher
>
The post was migrated from Yahoo.
Dear John,
Consider two end points on a secured debt continuum: the first collateral is a used car in relatively good condition, the second is a mattress with two years worth of use. In the first case, if the debtor offers to surrender the item the creditor will retrieve it because there is a good market for good condition used cars. In the second case (and I have actually had multiple clients with used mattresses as collateral) the creditor will do nothing.
Your client appears to fall somewhere in between these two end points, but pretty close to the mattress end. After all, FMV is only $600, and the cost of retrieving the furniture and storing it until resale will probably chew up most, if not all of the $600. Therefore, you should look at the condition of the furniture and then ask yourself whether the creditor will want to repossess it if your client refuses to sign a reaffirmation agreement. Is the furniture in good enough condition to be resold at more than the cost of retrieval and pre-resale storage? Will even be a buyer? If not, call the creditor's bluff and tell them to pick the stuff up. If you think the creditor will really send a couple of Brunos out to pick the stuff up, then your client has to decide whether she really wants to keep it.
My experience says that if your client has had the furniture for more than a couple of years, the creditor will abandon it. If that happens, then in the absence of a reaffirmation agreement your client's personal liability will be expunged on discharge, and your client will keep the furniture free and clear. Remember that reaffirmation means that your client's personal liability will survive bankruptcy. It is generally in your client's not to emerge from bankruptcy with any dischargeable debt. Therefore, there has to be a particularly compelling reason to reaffirm a debt. In my view your fact pattern doesn't appear to fall into the "particularly compelling" category.
By the way, make your client sign something stating that she has made the ultimate decision after you explained the consequences to her. That way you are protected.
All the best,
Nick
Nicholas Gebelt, Ph.D., J.D.
Law Offices of Nicholas Gebelt
15150 Hornell Street
Whittier, CA 90604
Phone: 562.777.9159
FAX: 562.946.1365
Email: ngebelt@goodbye2debt.com
Web: www.goodbye2debt.com
Confidentiality Note: This e-mail is intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential, or otherwise protected from disclosure. Dissemination, distribution, or copying of this e-mail or the information herein by anyone other than the intended recipient, or an employee or agent responsible for delivering the message to the intended recipient, is prohibited. If you have received this e-mail in error, please notify us immediately at 562.777.9159 or e-mail info@goodbye2debt.com and destroy the original message and all copies.
Representation Note: If you have not signed a contract of representation, the Law Offices of Nicholas Gebelt do not represent you, and this email does not contain any legal advice for you.
----- Original Message -----
To: cdcbaa@yahoogroups.com
Sent: Sunday, February 07, 2010 5:32 PM
Subject: [cdcbaa] Reaffirmation in this situation?
Hello all -
I have a client who didn't tell me that she had purchased her furniture with a security agreement. The financing company, American General, now wants her to reaffirm the debt on the furniture, and they have sent me a proposed reaff agreement. This agreement says that the remaining debt is $1400, and the FMV on the furniture is $600. At least they've lowered the interest rate from 21.9 percent to zero.
As I see it, she can 1. try to do a ride-through, in which case she's paying 21.9 percent interest on the furniture, 2. reaffirm and get a better deal (zero interest), or 3. tell American General to come by and pick up the furniture, and get something better and cheaper on Craigslist. I intend to advise her to do either 2 or 3, depending on her preference.
Any other things I should be thinking about, but am not?
- John Faucher
The post was migrated from Yahoo.
My advice is to ignore the letter. I do not believe any creditor wou
John wrote:
Hello all -
I have a client who didn't tell me that she had purchased her furniture with a security agreement. The financing company, American General, now wants her to reaffirm the debt on the furniture, and they have sent me a proposed reaff agreement. This agreement says that the remaining debt is $1400, and the FMV on the furniture is $600. At least they've lowered the interest rate from 21.9 percent to zero.
As I see it, she can 1. try to do a ride-through, in which case she's paying 21.9 percent interest on the furniture, 2. reaffirm and get a better deal (zero interest), or 3. tell American General to come by and pick up the furniture, and get something better and cheaper on Craigslist. I intend to advise her to do either 2 or 3, depending on her preference.
Any other things I should be thinking about, but am not?
- John Faucher
My advice is to ignore the letter. I do not believe any creditor wou
John <j.d.faucher@sbcglobal.net> wrote:
Hello all -
I have a client who didn't tell me that she had purchased her furniture with a security agreement. The financing company, American General, now wants her to reaffirm the debt on the furniture, and they have sent me a proposed reaff agreement. This agreement
says that the remaining debt is $1400, and the FMV on the furniture is $600. At least they've lowered the interest rate from 21.9 percent to zero.
As I see it, she can 1. try to do a ride-through, in which case she's paying 21.9 percent interest on the furniture, 2. reaffirm and get a better deal (zero interest), or 3. tell American General to come by and pick up the furniture, and get something better
and cheaper on Craigslist. I intend to advise her to do either 2 or 3, depending on her preference.
Any other things I should be thinking about, but am not?
- John Faucher
The post was migrated from Yahoo.
Hello all -
I have a client who didn't tell me that she had purchased her furniture with a security agreement. The financing company, American General, now wants her to reaffirm the debt on the furniture, and they have sent me a proposed reaff agreement. This agreement says that the remaining debt is $1400, and the FMV on the furniture is $600. At least they've lowered the interest rate from 21.9 percent to zero.
As I see it, she can 1. try to do a ride-through, in which case she's paying 21.9 percent interest on the furniture, 2. reaffirm and get a better deal (zero interest), or 3. tell American General to come by and pick up the furniture, and get something better and cheaper on Craigslist. I intend to advise her to do either 2 or 3, depending on her preference.
Any other things I should be thinking about, but am not?
- John Faucher
The post was migrated from Yahoo.