Legal Question in Bankruptcy in California

Secured Collateral

My husband and I received a Chap. 7 bankruptcy discharge last year. We

recently received a letter from one of his creditors looking to collect secured

collateral. The letter said the goods were ''secured by a purchase money

security interest in consumer goods.'' We were unaware that a credit card

from a major electronics retailer was considered secured. Further nothing

purchased on the credit card was of large monetary value. In other words

small stuff like DVDs and CDs were mostly purchased with the credit card. Is

this kind of stuff considered ''secured'' and what is the possiblity of the

creditor actually collecting this type of collateral? If the creditor does wish to

collect, is there some sort of list showing what they intend to collect? The

credit card was 7 years old and had been nearly paid off a couple of times.

Any help would be greatly appreciated!


Asked on 2/04/06, 1:02 am

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Secured Collateral

It is impossible to tell if the debt is secured or not without reading the credit agreement that you signed. Send the creditor a letter via certified mail telling them that you dispute the existence of a security agreement. Demand to see a copy of the purported security agreement. Demand a list of collateral that they claim is secured to pay the debt. That should make them go away.

If they continue to contact you or can't provide proof of a security agreement, contact a local bankruptcy attorney to consider filing a motion for sanctions for violating the discharge order.

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Answered on 2/04/06, 10:06 am


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