Financed Furniture
A few months ago, my wife and I financed a new bedroom set due to our old bed and dresser being completely worn out. The frame on the old bed was damaging the floor in our rented apartment and the dresser bottoms were falling out. It appears that we are now going to have to file for bankruptcy. Would I be allowed to keep the bedroom suite or would it be taken in the bankruptcy. It is purchased for approximately $1500 new. I live in Newfoundland
When you contact a local trustee to help you file bankruptcy make certain that you ask them this question.
The answer will depend on a couple of things:
1) Did you pledge the new furniture as collateral for the loan that you used to buy the furniture – in other words, did you sign a contract that said “if you don’t pay they may take the furniture back”? If you signed such a contract then you will either have to continue to pay for the furniture or it will have to be returned to the finance company.
2) Did you know you were in financial trouble when you purchased the new furniture? If you did know you were in trouble then someone might suggest you purchased the furniture knowing you wouldn’t be able to pay for it – that might have serious consequencs for you.
Remember to discuss this in detail with your trustee before you file for bankruptcy.