Question regarding cars

[StartingOver08]

Thanks - that's what I knew - BUT these cars are free and clear...

That's a good point. But I did not see where there is a requirement for the vehicle to have a loan on it in order to redeem. I could be wrong, but look at this link:

http://www.722redemption.com/trustee_program.aspx

Also look at this link from Moran Law: http://www.moranlaw.net/secured7.htm

[IBroke]

That's a good point. But I did not see where there is a requirement for the vehicle to have a loan on it in order to redeem. I could be wrong, but look at this link:

http://www.722redemption.com/trustee_program.aspx

Also look at this link from Moran Law: http://www.moranlaw.net/secured7.htm

Ah, that's an interesting option. So basically, you're paying over time what you would have to come up with in one amount (value of free and clear car minus exemption)..

Leaves only the question if that is affordable for many Chapter 7 filers if there is too much equity - and in addition, I assume the high APRs for redemption apply as well..

[StartingOver08]

Yep! Redemption is a consideration.

Ah, that's an interesting option. So basically, you're paying over time what you would have to come up with in one amount (value of free and clear car minus exemption)..

Yes, that way the Trustee gets their $$$ lump sum and you can make payments. Please note, the interest rate is high because you are in bankruptcy and there are a limited number of company's that do this type of financing. Most people only think of redemption for cram downs, but its for anytime you want to save a secured asset with a value larger than the exemption.