Legal Question in Bankruptcy in Texas

Are appliances unsecured debt?

We are considering a chapter 7. I understand that credit cards are ''unsecured'' debt and houses and cars are ''secured.'' But what about cards to electronics and furniture stores that were issued by the merchant like: Bestbuy; Conns, Havertys, Roomstogo, etc.? Would we have to continue to pay on the bills on these cards for our furniture, appliances, computer, etc.?

thanks much


Asked on 11/25/02, 4:36 pm

2 Answers from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Are appliances unsecured debt?

Sometimes they are secrued, sometimes not. Each one has to be looked at. Sears for example takes the position it has a security interest. Larry Maun 713-266-2560

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Answered on 11/25/02, 5:04 pm
Andrew Nichols Law Office of Andrew B. Nichols

Re: Are appliances unsecured debt?

Most people do not realize that on the back of the sales slip for many appliances and "big ticket" items there is language in small print that purports to give the store collateral in the item purchased -- a "security" interest. Some companies take the position that they will "repossess" the appliances unless they are repaid in full even though you file bankruptcy. However, most companies will negotiate and there are a lot of strategies that a good attorney will use on your behalf in this area. This is another important reason that I do not recommend people file bankruptcy without the benefit of an attorney. Please feel free to call me personally to discuss your situation in more detail. ph. (800) 303-0720

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Answered on 11/25/02, 6:45 pm


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