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I am about to file a Chapter 13 bankruptcy on Friday. Thinking I
should make the most of it, I went to a Rent-A-Center last week and
leased a computer and a washer and dryer for $70 and agreed on a
monthly payment of $140 and $70 for 80 weeks in order to rent to own
them (my credit is too bad for a personal loan).
What will happen to my rent-to-own stuff? Will the Rent-A-Center take
it away? I've just discovered that I cannot afford to make the monthly
payments but wanted to keep the stuff anyway.
Will I be able to include these items in my Chapter 13? I was hoping
to add these items so that I could consolidate my bills and stretch the
payments out over a five-year period.
b
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In article <bp88u09l3cpkj4b3u9mje00vvdb99r6tj0@4ax.com>,
"eatme" <alienated@peoplepc.com> wrote:
I am about to file a Chapter 13 bankruptcy on Friday. Thinking I
should make the most of it, I went to a Rent-A-Center last week and
leased a computer and a washer and dryer for $70 and agreed on a
monthly payment of $140 and $70 for 80 weeks in order to rent to own
them (my credit is too bad for a personal loan).
Using bankruptcy for financial gain (ie, making the most
of it) is committing fraud. I hope the Rent-A-Center
follows up on this and presses charges.
-john-
--
======================================================================
John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================
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"eatme" wrote in misc.legal.moderated:
What will happen to my rent-to-own stuff? Will the Rent-A-Center take
it away? I've just discovered that I cannot afford to make the monthly
payments but wanted to keep the stuff anyway.
Bankruptcy puts your debts on hold (and eventually cancels some of
them). It does not magically make it possible to get more things you
can't pay for.
Rent-a-Center will come get their stuff when you stop paying.
Bankruptcy won't change that -- it protects stuff you own, not stuff
you wish you owned.
You may as well save yourself the money and have them pick up the
stuff now, since you've said you won;t be able to make the required
payments.
--
If you e-mail me from a fake address, your fingers will drop off.
I am not a lawyer; this is not legal advice. When you read anything
legal on the net, always verify it on your own, in light of your
particular circumstances. You may also need to consult a lawyer.
Stan Brown, Oak Road Systems, Tompkins County, New York, USA
http://OakRoadSystems.com
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eatme wrote:
I am about to file a Chapter 13 bankruptcy on Friday. Thinking I
should make the most of it, I went to a Rent-A-Center last week
and leased a computer and a washer and dryer for $70 and agreed
on a monthly payment of $140 and $70 for 80 weeks in order to
rent to own them (my credit is too bad for a personal loan).
No kidding.
What will happen to my rent-to-own stuff? Will the Rent-A-Center
take it away? I've just discovered that I cannot afford to make
the monthly payments but wanted to keep the stuff anyway.
You very likely signed a security agreement at the RTO place. If so,
they continue to be the owner of the property, and are entitled to get
it back if you file bankruptcy.
Will I be able to include these items in my Chapter 13? I was
hoping to add these items so that I could consolidate my bills
and stretch the payments out over a five-year period.
All, well, you made a mistake. You should have just bought them on a
credit card. Even then, however, if they discover that you did that
while planning to file bankruptcy, they can still get it back.
Stu
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On Tue, 11 Jan 2005 14:05:43 -0500, "eatme" <alienated@peoplepc.com>
wrote:
I am about to file a Chapter 13 bankruptcy on Friday. Thinking I
should make the most of it, I went to a Rent-A-Center last week and
leased a computer and a washer and dryer for $70 and agreed on a
monthly payment of $140 and $70 for 80 weeks in order to rent to own
them (my credit is too bad for a personal loan).
What will happen to my rent-to-own stuff? Will the Rent-A-Center take
it away? I've just discovered that I cannot afford to make the monthly
payments but wanted to keep the stuff anyway.
Will I be able to include these items in my Chapter 13? I was hoping
to add these items so that I could consolidate my bills and stretch the
payments out over a five-year period.
b
Exactly what sort of transaction a rent-to-own (RTO) deal is has been
the subject of much dispute.
The common view of an RTO is that it is a lease. A case that takes
that view is Rembert v. KFJ Enterprises (2003); see
http://www.pawb.uscourts.gov/pdfs/Opinions/WWB/05-28-03.wwb.rembert.02-05597.pdf
A few take the view that an RTO is a kind of installment sale. If
there is state law treating RTOs as installment sales where you live,
it is probably to your advantage.
If the transaction is a lease, you as debtor have a choice of assuming
(honoring it) or rejecting. If you assume the lease, you are obliged
to continue to make the lease payments you agreed to make. If you
reject the lease, Rent-A-Center gets their goods back, and you are
quits.
If the transaction is an installment sale, you might be able to do a
"lien strip": reduce the Rent-A-Center's secured claim to the value of
the goods and treat the rest as an unsecured claim. Then you pay the
secured amount in full and pay the unsecured amount in the same
proportion as your other unsecured debts.
Your attorney can advise you as to how the goods you got from
Rent-A-Center should be treated. (If you don't have an attorney, get
one.)
--
Not a lawyer,
Chris Green
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On 1/11/05 2:05 PM, in article bp88u09l3cpkj4b3u9mje00vvdb99r6tj0@4ax.com,
"eatme" <alienated@peoplepc.com> wrote:
What will happen to my rent-to-own stuff? Will the Rent-A-Center take
it away?
Depending on the terms of the contract and local law, it may be treated as a
secured loan or as a lease.
However, the fact that you got the goods in anticipation of bankruptcy --
something discernable from the dates and likely to be accepted prima facie
by the judge -- may well cause dismissal of the case and denial of
bankruptcy.
You should discuss this with your bankruptcy lawyer. If you don't have a
lawyer and are filing pro se, your case will probably fail and you may be
worse off than before. You really need good advice, not Usenet comments.
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eatme wrote:
(my credit is too bad for a personal loan).
What will happen to my rent-to-own stuff? Will the Rent-A-Center
take
it away? I've just discovered that I cannot afford to make the
monthly
payments but wanted to keep the stuff anyway.
Will I be able to include these items in my Chapter 13? I was hoping
to add these items so that I could consolidate my bills and stretch
the
payments out over a five-year period.
Your arrangement is either a lease or a secured loan. In either case,
if you stop paying, your creditor has the right to take the items back.
The bankruptcy trustee may or may not choose to let you keep making the
payments.
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