Expert: Mark J. Markus- California Bankruptcy Attorney - 2/8/2009

Question
QUESTION: I filed a Chapter 7 bankruptcy last week and I have a rental agreement (for a tv)from Aaron's (It's a place just like Rent A Center). I want to know if there is ANY WAY possible that I can keep my tv? I am in Illinois. I've been told that I can pay just the market value somehow. Please help. My creditor's meeting is in 2 days and I know they'll be there to lift the automatic stay! Thanx in advance for your help.


ANSWER: First of all, the creditor's meeting has nothing to do with a motion for relief from stay.  Second, if this is a rental agreement or lease, then you just keep making the payments and as long as they are OK with that, there shouldn't be a problem keeping the TV.   If it's a  purchase money security interest they hold in the collateral, then you have the option of reaffirming the debt for fair market value or redeeming the property by paying a lump sum for the fair market value.  You need to discuss your options with your attorney and, if necessary, amend your Statement of Intentions accordingly.

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QUESTION: Hi,
I filed pro se. I believe it is a purchase money security interest, but to be absolutely positive, how do I find out? Actually, I was hoping I could find a way so that I could reaffirm and pay market value.

ANSWER: You'd have to get a copy of the contract/agreement you signed.   Honestly, unless they are making an issue out of it (and even if they are), your best bet is to wait until after the bankruptcy case and then negotiate something with them.  The chances that they really want to repossess your television are minimal.

---------- FOLLOW-UP ----------

QUESTION: Hi,
I do have a copy of the Agreement. What is it that I should be looking for specifically? Yes, they are already making an issue out of it. They told me they don't want my money, they just want the tv back. I do not want to give it back.

Answer
I can't tell you where to look on the agreement without seeing it.  You really need to discuss this with an attorney familiar with your case, because reaffirmation isn't an automatic thing; it has to be approved by the court.   If you really, really must keep the television, then you need to amend your statement of intention to include that you are going to reaffirm that debt, then enter into a reaffirmation agreement with the creditor after agreeing on a fair market value.  But this again assumes it's a purchase money situation and not a lease or rental.  If it's a lease or rental, then they can take it back and there's nothing you can do.

I see you gave me a 5 for timeliness.  I guess responding to you within a couple of hours on a weekend wasn't sufficient  That probably explains your other rating as well.  I'm sorry you didn't get everything you expected from this free forum.  Obviously you expect someone to review all your documents and advise you as if they were your attorney--for free.  Good luck to you.