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Expert: Regan Shinski - 4/19/2010


Question
I have a Sears Gold MC and a Sears Card.  I am having to file BK due to unforeseen med bills,and used the Gold card for a Central air/heat. The other card has a washer and dryer.  Can Sears come and repo any of them?
Thank you

Answer
Hi Chris:

Assuming they were straight out purchased and not under some rental-type agreement, it likely they cannot do so immediately.  You would need to read your terms of service on the card agreements to be 100% certain, but it is unlikely they can immediately.

However, a creditor CAN sue you and get a judgement against you.  Once a judgement is in place some states allow the judgement holder to use local law enforcement to confiscate personal property.  The sheriff's office basically comes out and either tags or takes personal property and - after certain appeals and paperwork is processed - they then sell it at auction to pay off the judgement.  It is not allowed in all states and most states have exempt property of varying degrees.  The key point is they cannot do it until a judgement is in place.

If you are listing the cards in the bankruptcy, they cannot repo them because the debt should be dismissed.  However, you DO have to list the items as assets in most cases to the bankruptcy court.

Good luck.  I hope this helps.

Regan

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Regan Shinski

Expertise

I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.

Experience

Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA - University of Minnesota

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(private)

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