Repossessions: 8.8.2.4 Ignoring the Claimed Purchase-Money Security Interest in Household Goods
One of the best options for a debtor facing a claimed purchase-money security interest in household goods is to ignore the claim of a security interest entirely. If the debtor completes a bankruptcy case without paying or reaffirming, the debtor’s personal liability on the claim will be discharged. Although the creditor will retain whatever rights it has to the collateral under state law, those rights are subject to whatever defenses the debtor has, as discussed above.