redeem car loan

[deadmonetree]

dont you have to use a 722 redemption loan or give them the lump sum cash? or can the credit union adjust the car loan to fair market value? which i think would be the best option because the redemption loans are extreemly high interest! can the judge make the cu adjust the amount? thanks for any info!!

[dogbone33]

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.

There are a list of things that need fixed. And the trailer I pull for work is 3800 pounds when I have full tanks. So, even though my Jeep can pull it, it struggles and sometimes pushes me when I stop. Yes the trailer has breaks, no I am not going fast.... I just need something bigger to use. But it looks like I will be stuck with it. I love it, just not for pulling my trailer!

[dogbone33]

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).

You can only do that if you can find a place to finance it. Like 722 redemption through US Bank. Believe me, I know! The other place isn't licensed in my state. I was just lucky that our credit union is willing to work with us. They are so overwhelmed with repos they don't want mine! And with 722 it has to be a newer car with nothing over so many miles...

[debtmonster]

They are so overwhelmed with repos they don't want mine!

That's SWEET! So then we need more people to give back (or try to give back) their car as a repo so that more banks will be in the same position and want to make a deal. That all works in our favor as a consumer, big time.

[deadmonetree]

hey dogbone 33 thats great that they were willing to work with you! did they drop your loan amount? how were they willing to work with you? or so you mean they let you ride through?

[IBroke]

You can only do that if you can find a place to finance it. Like 722 redemption through US Bank. Believe me, I know! The other place isn't licensed in my state. I was just lucky that our credit union is willing to work with us. They are so overwhelmed with repos they don't want mine! And with 722 it has to be a newer car with nothing over so many miles...

I hear what you're trying to say but it is crucial to be careful with general statements. What I highlighted in bold applies to 722 redemption-loans but NOT to the 722 redemption-law itself. We mustn't forget what "722" means and is. 722 is a part of the BK-law (Chapter 7) and not a loan. A loan is not a requirement to apply 722.

In my case, I will apply this redemption-law to my 7 months old car-loan and redeem in cash. No loans involved and my car is 10 years old.

[IBroke]

dont you have to use a 722 redemption loan or give them the lump sum cash? or can the credit union adjust the car loan to fair market value? which i think would be the best option because the redemption loans are extreemly high interest! can the judge make the cu adjust the amount? thanks for any info!!

That's correct - under 722, you either have to come up with the entire market-value in cash or have a loan. The CU might work with you but there is no law that requires them to do so.

A lender can't be forced into a reaffirmation (just like the debtor can't be forced into one) - however, the lender can be forced into a redemption.

[dogbone33]

hey dogbone 33 thats great that they were willing to work with you! did they drop your loan amount? how were they willing to work with you? or so you mean they let you ride through?

Our lawyer offered 6k. They came back with 10k. We owe 18k. So..... But it really isn't worth 10k but we need a vehicle.... So I am prolly stuck with it! I guess they have so many repos they don't want mine. We were going to surrender it but they called our lawyer and told them we could reaffirm it with them for lower.

[debtmonster]

Our lawyer offered 6k. They came back with 10k. We owe 18k. So..... But it really isn't worth 10k but we need a vehicle.... So I am prolly stuck with it! I guess they have so many repos they don't want mine. We were going to surrender it but they called our lawyer and told them we could reaffirm it with them for lower.

You're not stuck with it. There's TONS of SUV's/Trucks you can buy on Autotrader for THOUSANDS cheaper. How long would it take you to round up $3-5k cash when not paying all of your current debts from the bankruptcy?

[dogbone33]

You're not stuck with it. There's TONS of SUV's/Trucks you can buy on Autotrader for THOUSANDS cheaper. How long would it take you to round up $3-5k cash when not paying all of your current debts from the bankruptcy?

Ha ha! We could never save that much..... My hubby brings home $550-$600 a week and mine varies since I own my business. Right now I am making $500-$600 a week (hopefully when it gets nice I should bring home at least 1k a week). We have 2 small children also.. I just got back to work after a major (unexpected) surgery so we are still trying to "catch up" and we are just paying utilities, student loans, my business loan (on a secured trailer). So yes, we are stuck with it. My dad even tried to get a loan in his name but since he already had a vehicle he was financing they wouldn't do another. Guess the credit crunch effects more then just bk peeps.

[debtmonster]

How can you not save it up with making $4,000/mo? When paying all of the bills, I could never do it. But once you file bankruptcy, most all of that money should be yours to keep.

That's how I will do it. My problem is that we used to gross almost $7000-9000/mo. This month I only grossed $3100. I just got paid on Monday (I get paid once per month). After we paid the lawyer their money, the phone bill, my $300 car payment, the electric and the cable modem, we barely have $400 to live on until the middle of next month!!!

We're basically under house arrest. We cannot afford to drive anywhere, buy food or do anything. This really sucks.

[BillyRip]

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).

TY sir!