Secured ?? Loan

Question:
Pre Chapter 7 question: I took out a loan about 18 months ago with Household Finace. I got a signature loan for $7,000. The balance is now about $5,500. I remember the loan guy asking me if a had a TV, stereo, and PC just as we closed the loan. Assuming that we still have all that stuff (we have half of it)- can the loan company ask for the merchandise? What do they do - march into our home and just point at stuff and take it? THanks for you help

Answer:
Assuming there was a security interest and it was properly perfected under your state's law (not always a given), HFC would have to file a special type of lawsuit called a "replevin" action to be able to have the sheriff take possession of personal property given as security for a loan. In most cases, it just isn't cost-effective. I'd suggest having your bankruptcy lawyer review the loan documents and let you know if this is even an issue. If I'm not mistaken, you may be talking about the same Household Fianance that handles credit cards for Best Buy, Comp USA, and IKEA (there are probably more). I have all three and am also pre-Chapter 7. I'm *not* a lawyer. I've researched and read that Best Buy credit can get very nasty, and Best Buy credit is Household Finance. On the other hand, I haven't read that the other two mentioned cause problems. Why there is a difference since they are all under Household Finance's umbrella, I don't know. Of all of my debtors, though, Household Finance is the one I'm watching the most because of the reputation for nastiness. I owe about what you do on all three cards combined. Your situation is not a credit card, and Brett is solid- if he says no one will show up at your door, I believe him. I still wouldn't turn a blind eye to Household Finance completely- just watch them.





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