Legal Question in Bankruptcy in California

Re: Discharged Bankruptcy

Yes, they are secured by those items and the bankruptcy does not affect their security interest. However, you cannot reaffirm after your discharge has been granted. Technically, since they are secured, the creditors can seek to have the amount you owe them rendered nondischargeable in your bankruptcy, but depending on the amounts involved, I highly doubt they would do that. It may depend in part on what you put in your statement of intentions with your bankruptcy papers.

Re: Discharged Bankruptcy

Once a person receives a discharge, it is too late to reaffirm a debt. Additionally, in this district, a person is not required to reaffirm secured claims; however, in order to keep the collateral (usually a home, a car, or furniture), one must remain current on the obligation.

In your case, you do not have the collateral and your personal obligation on the loan was discharged. The lender can try to recover the collateral from the people who bought the furniture in the garage sale, if the lender finds them. (If they are found, the buyers may have some defenses as well.) The lender is basically out-of-luck.

If the creditors continue to harass you, they are violating the post-discharge injunction and could be forced to stop and pay your attorney fees for having them stop.

If you need assistance, you can call my office at (818) 992-6588 to discuss this further.