Q: Can a creditor demand return of merchandise which was bought 6 months before filing after the bankruptcy is discharged?
I bought a mattress in October of 2020 from a furniture store, and financed it. I filed Chapter 7 bankruptcy approximately 6 months later, and it was discharged in April 2021. Now the creditor is demanding the merchandise back or they will take court action. I thought I was done after the discharge. This creditor was not present at the creditors meeting.
A: Depends on whether it was secured or not by the creditor.
Malissa L. Walden agrees with this answer
A: Look to see if this creditor was a secured creditor and had a security interest in the property OR if you had a lease agreement with them. Either way you should have stated your intention regarding the debt and asset. You may be liable under a lease agreement post-bankruptcy if you assumed its terms. You may also be liable post-bankruptcy for secured debt if you signed a reaffirmation agreement. If you did neither, the creditor may still be entitled to their property. Creditors need not be present at the Meeting of Creditors.
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