Can I keep my
jewelry and furniture?
Most credit for jewelry, furniture, and
electronics is secured. The creditor has what is called a
purchase money security interest. This means that the gold
bracelet you bought for your wife for valentine’s day with
the store’s financing plan is collateral for the store if
you don’t pay. You have to decide if you want to surrender
the item back to the creditor and discharge the balance of
the debt; reaffirm on the payments and keep the item; or
redeem the item. Redemption is an agreement to pay back a
lump sum to the creditor as payment in full. Say you still
have a balance of $700.00 on that bracelet, the creditor
may offer a redemption of $400.00 flat fee as payment in
full. The choice is yours, and when deciding what to do,
consider the value of the item, how much you still owe, and
your ability to pay to come to the right conclusion.