Nebraska Furniture Mart Charge Account | Will a Bankruptcy Affect It?

July 12, 2022 | By Steffens Law Office
Nebraska Furniture Mart Charge Account | Will a Bankruptcy Affect It?

Like many Nebraskans, you may have used a Nebraska Furniture Mart (NFM) charge account to help you furnish your home. However, if you’re struggling to pay debts and decide to go through with filing a bankruptcy, it may affect your NFM account. Not everyone’s situation is the same. For that reason, a bankruptcy’s effect on your NFM charge account will vary from one person to another.

What Impact Will Bankruptcy Have on My Nebraska Furnitire Mart Charge Account

Below, our Lincoln bankruptcy lawyer walks you through your possible situation to help you find what steps you should take next:

“I’m up-to-date with all my Nebraska Furniture Mart payments.”

  • That’s great! In this case, you’ll likely not need to worry about a reaffirmation agreement (an agreement between a creditor and you that ensures you’ll still pay the debt in the event of a bankruptcy). By making your payments on time, you’ve already shown NFM that you’re willing to pay.

“I’m behind on my payments, but I still want to keep my furniture!”

  • In this case, you should definitely start making payments as soon as possible. If you’re making payments at the time you file bankruptcy, you shouldn’t have any problems with NFM.
  • You’ll likely be asked to sign a reaffirmation agreement. Signing this is a promise to NFM that you’ll make payments even after the bankruptcy ends. If you’re behind paying on several big purchases, it could be a good idea to sign this; it would prevent NFM from filing an adversarial case against you (which argues to the bankruptcy court your debts aren’t dischargeable).
  • However, if you do sign the reaffirmation agreement, NFM could sue you after your bankruptcy if you don’t make payments.

“I’m behind on payments, but I don’t need to keep the furniture.”

  • If you’re falling behind on payments and don’t catch up, NFM will likely sue you after the bankruptcy to get their property back.
  • If, for example, you purchased flooring from NFM and installed it, while NFM could still sue you, they’re not entitled to the flooring anymore since it’s now attached to your property.

“I haven’t paid NFM, and I no longer have my furniture.”

  • If you haven’t paid NFM and have either sold or tossed your furniture, you run the risk of your debt not being discharged in your bankruptcy. This is especially true if you still owe them thousands of dollars.
  • Resolving the adversarial case may cost you more than what you owe. You may need to make the decision to pay NFM back instead.

Contact Our Lincoln Bankruptcy Attorney for More Information on Your Nebraska Furniture Mart Charge Account

Furnishing a home is expensive, and conveniences like the Nebraska Furniture Mart charge account can make furniture and appliances feel more affordable. However, debts pile up quickly. If you’re concerned about a charge account and need to be released from it, call our Lincoln bankruptcy lawyer today at (308) 872-8327 and ask us any questions you have. We’ll gladly guide you through this difficult time and help you decide if bankruptcy is right for you.