Is financing obtained through Jared The Galleria of Jewelry dischargeable by bankruptcy?
I have multiple creditors, and due to hardships that I won’t detail here, I haven’t made any payment to any of my creditors in roughly 90+ days. Some accounts have been turned over to collections and some have not. While speaking with a rep from Jared’s credit department, they told me this was a secured debt, not dischargeable by bankruptcy. I don’t understand how this works since I don’t believe they can legally reposes the merchandise (in this case, an engagement ring) considering it has technically been given to someone else, or I could say I sold it, lost it, etc. I plan to declare bankruptcy in the coming weeks before my wages get garnished, and I’m wondering if this account will be included?
If you can see through the legal jargon, please help. here is the link to the terms and conditions. thanks
http://www.jared.com/lwp/wcm/connect/Jared/Instant+Credit+Application/Credit+Terms+and+Conditions
thanks douchebag, i didn’t ask for a financial advice lesson, i asked for an answer to my question…do you seriously have nothing better to do?
Okay i read the terms. Wow. You should have before you signed.
The contracts states that the item itself serves as security on your continued payment until it is paid off.
13. Security Interest: You grant us a purchase money security interest in each item of merchandise purchased on your Account to secure its unpaid purchase price
If payments are not received, the contract states they may very well attempt to repossess the item. "" We also may repossess any article of merchandise in which we still retain a security interest, but we will do so only in the manner and to the extent permitted by applicable law. "
Depending on the price of the item, it seems unlikely they would attempt repossession.. But it seems unlikely this debt will be discharged by bankruptcy You will be advised by your attorney to return the item to Jareds to reduce as much liability as possible. If you can not you will be liable for the entire amount plus fees.
When the legal jargon is brushed aside the truth shines through brightly. It takes many forms, but one of them is "do not buy what you can not afford".
References :
The rep from Jared’s was shooting straight with you, to some extent.
A secured debt means that they maintain an interest in a particular item (a ring, in your case) and they can attempt to repo it. Whether they do or not depends on how much is owed and what the item is worth to them. And, technically, you didn’t give it to someone else because it isn’t yours to give away until it’s paid for. If it’s a valuable ring, they will get a judgment and find it.
It’s tougher to get secured debt discharged via bankruptcy, but it is possible in some circumstances. You’ll just have to discuss it with your lawyer when you file.
References :
Okay i read the terms. Wow. You should have before you signed.
The contracts states that the item itself serves as security on your continued payment until it is paid off.
13. Security Interest: You grant us a purchase money security interest in each item of merchandise purchased on your Account to secure its unpaid purchase price
If payments are not received, the contract states they may very well attempt to repossess the item. "" We also may repossess any article of merchandise in which we still retain a security interest, but we will do so only in the manner and to the extent permitted by applicable law. "
Depending on the price of the item, it seems unlikely they would attempt repossession.. But it seems unlikely this debt will be discharged by bankruptcy You will be advised by your attorney to return the item to Jareds to reduce as much liability as possible. If you can not you will be liable for the entire amount plus fees.
References :