Expert: Terry Leeders - 4/19/2009

Question
I live in Florida and have filed chapter 7 and have recently received a reaffirmation agreement from a Jewelry store insisting I reaffirm the loan or surrender the ring.  

The problem is the reaffirmation doubles what is owed on the ring and I will surrender the ring, but I traded in a ring with the value of $ 1400.00 put $ 100.00 dollars down and made five payments of $ 95.00 each.  I feel before I surrender the ring they need to surrender the trade-in and down payment back to me either in giving me back the ring or cash value.  

Do I let a judge determine this or can you possibly give me advise?

Thank you in advance for your assistance with this issue!

Answer
The trade in reduced the balance you owed, so you cannot force them to turn back over the ring you gave them.  The reaffirmation should be for the same terms of your original contract, or better, often just for Fair market value. So, talk to your lawyer to see if they can renegotiate the reaffirmation terms.