redeem car loan

[deadmonetree]

hello! we have a car loan for a 2008 at 4.5% I am wondering if anyone has been able to have their credit union change the amount of the loan to the fair market value instead of doing a 722 redemption.
I have read that the judge can order a release of the lein so the debtor only owes fair market value. I have searched and havent seen anything to answer this question. Hopefully credit unions are doing this because the redemption loans are scary!

[deadmonetree]

has anybody had any luck with this?

[dogbone33]

We owe 18k on our Jeep worth 6k. We were going to surrender it. The Credit Union came back and asked to reaffirm at FMV. Our lawyer offered 6k and we had to take it to them and have them "appraise" it. The chick checked the miles and walked around it. It needs work.... It is an 03 also. They came back with 10k. We are afraid we won't get a car loan so we are probably going to keep it. I need it to pull a trailer for my business, so can't be with out a car. So, maybe yours will work with you. But then again yours is an 08. If you have a lawyer have them do the wheeling and dealing...

[deadmonetree]

well at least it has happened for someone! can i ask who the cu was? I would like to redeem but not for 24 %!

[biotechsolution]

To have the judge cram down the loan you have to have had the car over 900 days, a 2008 won't be elgible.

[debtmonster]

Why must they punish us at 24%? I don't get it. They are just asking for people to default by punishing people with such a ridiculous rate right after a bankruptcy. Why can't they just do 7 or 8% being that they know we can't default?

[BillyRip]

Can you actually cram a car loan that's over 910 days in a 7? I thought that was only in a 13? Thanks!

[debtmonster]

Just give the car back and get another one until you get back on your feet and then buy a nicer one later on. No point in fighting a losing battle of ridiculous interest just to make some bank rich off of it.

[inpain66]

I called a 722 redemption company yesterday. I owe 16k on the car but it is worth 16-18k still. The redemption company told me that my current payments and interest rates are so good that they cannot match it.

I am unsure about signing a reaffirmation with the credit union but I would like to keep the car since no one is going to finance me at this point.

[debtmonster]

Why can't you give the car back and finance a $5,000-10,000 car? Why must you finance a $16,000 vehicle for?

[dogbone33]

If it were me I would just keep paying the payments. I am stuck where we can't get financed and my Jeep needs a ton of work, but have no choice but to keep it. I don't know yet how much my monthly payments will be or what the interest will be on it. I am assuming my payments will go down, but who knows. The credit union is a local one in my town. But if you can afford to keep it, do it. That way you know you have a reliable car. We were going to buy an 08 Ford F 150 this summer and didn't and wish we would have. But we didn't know we were going to be filing.

[debtmonster]

What's wrong with the Jeep? I was at the Jeep dealer the other day. They wanted way too much money for the thing, so I walked. I don't want to buy more than I can afford.

[inpain66]

Why can't you give the car back and finance a $5,000-10,000 car? Why must you finance a $16,000 vehicle for?

Because my FICO is now in the 400's and I did not even file my Chapter 7 yet. No one is going to finance me even for 5k. I wish I could get the financing but it is just not going to happen and I cannot be without a car because there would be no way to get to my job.

[IBroke]

To have the judge cram down the loan you have to have had the car over 900 days, a 2008 won't be elgible.

Wrong - that limitation only applies to Chapter 13.

[IBroke]

Can you actually cram a car loan that's over 910 days in a 7? I thought that was only in a 13? Thanks!

In a chapter 7, you can cram down (redeem at Market-Value) ANY car loan - no matter if it's over 910 days or not. 722 has no time-limitation - 1325 has (those are the specific sections from the BK-law).