top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

question about 722 redemption funding

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    question about 722 redemption funding

    is 722 redemption funding some bankruptcy rule and they turned it into a company name?

    do many companies offer 722 redemption funding? seems like all this junk mail is coming from an ohio company.

    im not in a car with payments, i own my car. what would/could they do for me?

    long shot i know, but do they have good interest rates

    bottom line, is it something that can only be used while inside a bk case? and should i take advantage of it even if i dont need a car?

    thanks for any help.

    (i expect full and complete answers in 60 seconds - i was told that this board rocks with thousands of 24/7 helpers - thanks )
    Im not an attorney or a trustee. You cant trust me either though!

    [x] - Done with 341? Join the 60 Day Club! ___________[x] - Im Discharged! Whoo Hooo!
    [x] - Poll: Should I File Pro-Se ____________________[x] - New BK Law: Median Income, Means Testing and Presumptive Abuse
    [x] - Zombie Debt Collectors Dig Up Your Old Mistakes _-[x] - Bankruptcy Law Resource
    [x] - Need A Fast Answer? Available 24/7!--__________[x] - Dont Be A Hero On Your Budget - You Wont Get An Award!
    Tags: None
    #2
    Hey Bkfiller, I have a question why would you want to use 722 redemption if you do not need a car? that sounds like an unnecessary expense, seeing that your free and clear on a car payment. That's just my opinion certainly not fact, just curious.
    Discharged 2/27/06, closed 6/1/06

    Comment

      #3
      722 redemption is part of the BK code. And you hit the nail on the head-the main company that does it uses that as a name. (Pretty smart-if someone googles the term the company comes up.) When I was looking into it, there was another that I found on the web also - freshstartloans.com.

      The company I worked with (722 red.) did say they only worked w/ people in ch. 7, and had to be before discharge. My best guess is they have some sort of special tax status for it?


      Edited to add:
      No, the APR is NOT good! 25%. But, if we pay extra, it will pay it off sooner. And even though the APR is high, if we were to just pay out as scheduld we'd pay less for the vehicle we got from them than what we would have paid for the vehicle we surrendered.

      Had: '03 Galant, 55,000 miles (used for newspaper delivery part time-lots of wear & tear on the car & miles); owed $369X22 payments plus $7100 or so balloon payment. If we had kept it, would have had to get another vehicle within 2 years anyhow, since there was no way I was going to reaffirm and deal w/ the balloon payment. It made more since to me to start paying on the next car, rather than sink another $369X22 into it.

      Got: '02 Taurus, 36,000 miles (had been a lease turnin, I think that's all they deal with); owe $295X51. By my calculations, if we pay on the 1st rather than the 17th (our rent is due on the 15th, and our former car had been paid on the 1st so as not to have the 2 big bills at the same time) that would save between 1-2 loan payments, just due to the way interest is accrued. And, if we pay $369/mo as we had on the other car, would pay off more than a year sooner. (Saving $2000+ in interest.)
      Last edited by StaciMM; 12-11-2005, 04:48 PM.
      Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

      Comment

        #4
        i dont know. thats why im asking. i dont know anything behind the 722 funding. im thinking maybe its some special program that i should take advantage of.

        im not working right now and on unemployment so not sure if they would really loan me money for a car.
        Im not an attorney or a trustee. You cant trust me either though!

        [x] - Done with 341? Join the 60 Day Club! ___________[x] - Im Discharged! Whoo Hooo!
        [x] - Poll: Should I File Pro-Se ____________________[x] - New BK Law: Median Income, Means Testing and Presumptive Abuse
        [x] - Zombie Debt Collectors Dig Up Your Old Mistakes _-[x] - Bankruptcy Law Resource
        [x] - Need A Fast Answer? Available 24/7!--__________[x] - Dont Be A Hero On Your Budget - You Wont Get An Award!

        Comment

          #5
          well are they required to have special interest rates?

          whats the purpose of working with people in bk only?

          does that mean they are taking advantage of those people?
          Im not an attorney or a trustee. You cant trust me either though!

          [x] - Done with 341? Join the 60 Day Club! ___________[x] - Im Discharged! Whoo Hooo!
          [x] - Poll: Should I File Pro-Se ____________________[x] - New BK Law: Median Income, Means Testing and Presumptive Abuse
          [x] - Zombie Debt Collectors Dig Up Your Old Mistakes _-[x] - Bankruptcy Law Resource
          [x] - Need A Fast Answer? Available 24/7!--__________[x] - Dont Be A Hero On Your Budget - You Wont Get An Award!

          Comment

            #6
            I wouldn't call it taking advantage.

            There main business is redemption loans. If someone is seriously upside down, its better to pay off a lower amount at a high APR than their original terms. (Keep in mind that the APR on their old vehicle probaly wasn't excellent.)

            For someone in BK who NEEDS a car-perhaps they are so far behind & upside down on their prior that it would be impossible & pointless to try to keep it-I would highly recommend the replacement program.

            On the other hand, if someone is current, could choose to not reaffirm and make payments for another 3-6 months after BK, then they're better off doing so. Within 3-6 months of discharge, they'll probably have a choice of 3-6 places (depending on size of area) where they can get a used car for a teen interest rate.


            Originally posted by bkfiler
            well are they required to have special interest rates?

            whats the purpose of working with people in bk only?

            does that mean they are taking advantage of those people?
            Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

            Comment

              #7
              Since credit isn't a real issue, they do require job stability (1 year plus on same, I think). US Bank is the lender, so an IIB on a US Bank account would be a problem also!


              Originally posted by bkfiler
              i dont know. thats why im asking. i dont know anything behind the 722 funding. im thinking maybe its some special program that i should take advantage of.

              im not working right now and on unemployment so not sure if they would really loan me money for a car.
              Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

              Comment

              Previous template Next

              bottom Ad Widget

              Collapse
              Working...
              X