Can a collections law firm come after collateral from a bankruptcy discharged a year ago?

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Can a collections law firm come after collateral from a bankruptcy discharged a year ago?

I received a collection letter asking if I want to voluntarily surrender collateral from a discharged debt. The bankruptcy was discharged almost a year ago. Shouldn’t this come up at the meeting of creditors? Also, the creditor seems to be listed incorrectly. The letter doesn’t specify what the collateral is, although I’m pretty sure it’s my TV. What does this mean?

Asked on August 8, 2012 under Bankruptcy Law, California

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 9 years ago | Contributor

If the creditor is a secured creditor and has a validly perfected lien against collateral, then that lien survives (meaning, it is not affected by) your bankruptcy discharge.   If this was a department store purchase, such as Best Buy or HSBC, they are most likely secured and are entitled to the fair market value of the item.  You ought to be able to negotiate a very low payoff with them, or you can simply surrender it with no further obligation.

Mark J. Markus, Attorney at Law
Certified Bankruptcy Law Specialist--State Bar of California Board of Legal Specialization
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/
Follow Me on Twitter:  @bklawr 


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