How long to Redeem Auto

[pigpen75]

I live in Missouri and I was wondering how long do I have to decide if I want to redeem my automobile. I just unexpectedly received a $6k exemption and now it would be in my best interest to redeem my truck because I owe $13k and its only worth about $6. My 341 meeting was on Dec. 22. Also if its too late what would happen if I just surrendered the truck over to the bank and stopped making payment??? Thanks

[ansky0007]

Try contacting the folks at: http://www.722redemption.com/

You can probably wipe out all the negative equity.

[pigpen75]

Try contacting the folks at: http://www.722redemption.com/

You can probably wipe out all the negative equity.

Not sure what you mean by "negative equity". I'm up to date on all my payments

[ansky0007]

You said you owe $13k and its only worth $6k, That means you have negative equity of $7k. You can do a 722 redemption and get a new loan for the vehicle at its current worth and strip off the negative equity.

[pigpen75]

You said you owe $13k and its only worth $6k, That means you have negative equity of $7k. You can do a 722 redemption and get a new loan for the vehicle at its current worth and strip off the negative equity.

Sweet, I'm calling them.

[NoMoreRed]

Try contacting the folks at: http://www.722redemption.com/

You can probably wipe out all the negative equity.

We worked through them and were approved. Judge signed the order about a week ago. They were pretty easy to work with. Since the state of the economy and gas prices have pushed the value of SUV's so low we were able to redeem our perfect SUV for $4000. The amount owed was just over $14,000 so the difference was significant enough to go through with it. Funding is through US Bank. Good Luck.

By the way...this is my first post here and I have been lurking and gaining insight throughout our process from this forum. I'll have to gather my info and post my story in another thread so I can hopefully help out more.

[OhioFiler]

You could also stop making payments and drive the truck until they come to get it. At that point you could buy a car for $6,000 but have saved a few months of car payments for a downpayment.

[ursula]

This really sounds like it is too good to be true. So basically your current finance company has to be willing to take a payoff that is significantly lower than what is owed, so why would they be willing to do that? I am very interested, though. My husband really loves his suv, and I really don't want him to have to give it up, and he really does need it to drive to work. But we are upside down by at least $5000 and I hate the idea of having 3 more years of paying this off. We sign today and file tomorrow...but we are still undecided on the suv loan. Has anybody else looked into this?

[ansky0007]

This really sounds like it is too good to be true. So basically your current finance company has to be willing to take a payoff that is significantly lower than what is owed, so why would they be willing to do that? I am very interested, though. My husband really loves his suv, and I really don't want him to have to give it up, and he really does need it to drive to work. But we are upside down by at least $5000 and I hate the idea of having 3 more years of paying this off. We sign today and file tomorrow...but we are still undecided on the suv loan. Has anybody else looked into this?

Its quite simple... If you stop paying on the vehicle the bank has to repo it (Costs Fee's) they then need to prep it for auction (Also Costs Fee's) and then they have to auction it (Also costs more fee's)

The bank would much rather settle for the fair auction value and move on. Its a benefit for you since you get to keep your current car at its current value. In many cases keeping a vehicle which you know you maintained is much better than taking a gamble and buying another used car.

[ursula]

sounds good, I am looking into it as I type. Thanks for the quick response, btw. Is it better to wait to file bankruptcy before I apply, or will that look bad to the trustee on meeting day?

[ansky0007]

sounds good, I am looking into it as I type. Thanks for the quick response, btw. Is it better to wait to file bankruptcy before I apply, or will that look bad to the trustee on meeting day?

I believe you can only do a 722 redemption during a bankruptcy.

[ursula]

ok, thanks for the advice, I will look into applying next week after I file.

[NoMoreRed]

The way it worked for us is the 722 Redemption loan was approved and the Motion for 722 Redemption was filed with the court for approval by the judge. Upon filing the creditor is notified and can contest it if they choose to do so, but have 20 days to contest it. Once the 21st day came up our lawyer filed a motion of no contest and the judge approved it which forces the current lien holder to release the lien to the new lien holder (US Bank) upon receipt of the reduced payoff. It all has to be done prior to discharge though.

Another thing...we did this because of the obvious difference in what we would owe along with the fact that the vehicle is perfect and we would be hard pressed to get another for the same price that is anywhere near as good a condition. Also, if the 722 redemption loan isn't approved for your current vehicle then you will possibly be able to be approved by them for a replacement vehicle.

This forum is where I found out about this option and then I approached our lawyer about it. This is a good place to get info for sure.

[IBroke]

We worked through them and were approved. Judge signed the order about a week ago. They were pretty easy to work with. Since the state of the economy and gas prices have pushed the value of SUV's so low we were able to redeem our perfect SUV for $4000. The amount owed was just over $14,000 so the difference was significant enough to go through with it. Funding is through US Bank. Good Luck.

By the way...this is my first post here and I have been lurking and gaining insight throughout our process from this forum. I'll have to gather my info and post my story in another thread so I can hopefully help out more.

A question about the value: May I ask what District Court you filed and what they (or you) used (KBB/NADA/Carmax) to get the $4K-value that was used to redeem?

Thanks!

[IBroke]

This really sounds like it is too good to be true. So basically your current finance company has to be willing to take a payoff that is significantly lower than what is owed, so why would they be willing to do that?

Well, as stated before, because they don't really lose money because they wouldn't get the entire balance if you would - let's say - surrender (all they would get is a car WORTH amount X and when you redeem, you pay them the amount X instead of returning the asset.

In addition, it doesn't matter if they are "willing" to do it - it's the law and your right to do so.