I have a small family business and a customer who is buying our
(removable) home security product on time, owing $1300.
She will be out of work for 1 year finishing a degree in nursing and
so cannot work or pay. She is now over 3 months past due (contract
says max. is 2 months) and has a lawyer preparing to file bankruptcy
papers.
It is virtually impossible to reach her by 'phone or at home.
What action can I take or what certified mail notice can I send so I
can recover my products before the bankruptcy? What does one do if
someone simply will not answer the door or will not let one in? |
Request for Question Clarification by
tutuzdad-ga
on
21 Oct 2003 10:59 PDT
What states/counties are the two of you located in?
regards;
tutuzdad-ga
|
Clarification of Question by
alb-ga
on
21 Oct 2003 17:35 PDT
Nelson county, Kentucky. Sorry, I forgot!
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Request for Question Clarification by
taxmama-ga
on
21 Oct 2003 19:33 PDT
Dear Alb-ga
When you set up this financing arrangement, did your
contract include anything about transferring title to her,
or about title reverting to you if she defaulted?
Did you file a UCC-3 document to 'secure' or 'perfect' your
interest in your home security product?
Take a moment to read your contract. You may have some
built-in remedies that make you a secured creditor when
she files bankruptcy. That means, you get to take your
system back. You can file a claim in bankruptcy court and
have the sheriff or marshall come to her house to retrieve
your property.
If not...well, it will be harder. But not impossible.
Best wishes
Your TaxMama-ga
|
Clarification of Question by
alb-ga
on
25 Oct 2003 05:28 PDT
Sorry for delay, I've had computer problems. The pertinent contract
wording is:
DEFAULT - If the buyer defaults by failing to pay the minimum amount
due on two occasions within any twelve month period, and the buyer
does not cure the default in 28 days of written notice of default in
accordance with applicable law, the entire balance at seller's option
becomes due and payable. Seller's waiver of any default shall not
operate as a waiver of any other default. Seller has the right to
take back goods and hold Buyer(s) liable for the unpaid balance and
attornets fees or other collection costs.
SECURITY INTEREST - Buyer grants to Seller a purchase money security
interest in the merchandise purchased, unless prohibited by Buyer's
State of residence. No security of lein (except judgement lein) in
retained in real estate used as Buyer's principal residence.
This is a Revolving Credit Account with no mention of title that I can
see. No UCC-3 document or secured creditor mentioned.
How can I "have the sheriff or marshall come to her house" to retrieve
my property?
Thanks!
|
Request for Question Clarification by
serenata-ga
on
25 Oct 2003 06:39 PDT
Hi Alb ...
You didn't say how you became aware of the lawyer preparing bankruptcy
papers for her - did *she* inform you of that, or did you hear about
it from the lawyer?
If you have heard from the lawyer, you can reply to the attorney that
you have a secured lien in the property according to that agreement
and you can file a secured Creditor's Claim.
If she merely says that she "is going to", you may have to go through
collection proceedings to retrieve your secured property. The problem
could be timing, as any collection process could ultimately be stayed
(put on hold) by bankruptcy proceedings if she does file.
So, how you came to hear of the bankruptcy is also important, too, and
might be a determinant in how you proceed.
Serenata
|
Clarification of Question by
alb-ga
on
25 Oct 2003 11:52 PDT
Dear Seranata-
Nolawyer contact; buyer told me that she has a lawyer preparing
bankruptcy papers and that he said it would look better on her record
to show a bankruptcy rather than to show a repossession. Do I
actually have a secured lein? Collection proceedings have been gone
through and she is 90+ days past due and I want to take action before
any "stay" or anything being put on hold. Please see my previous
questions eg. about using the sheriff or marshall. Thanks.
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