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Help! Question about US Bank and/or 722

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    Help! Question about US Bank and/or 722

    I'm not sure what to do, or exactly what some of this stuff means, so bear with me! I just started reading up on this a few weeks ago.

    I have a checking and savings account with US Bank. They offered me a "Reserve Line of Credit" of about $800, which is currently maxed out.

    They also offered me a "Checking Account Advance" line of $500, which is basically a payday loan where you borrow up to $500 and pay back the borrowed amount PLUS $10 for every $100 as soon as you do a direct deposit of $100 or more. You guessed it, I've been borrowing $500 and paying back $550 TWICE a month for quite some time. I just can't seem to get caught up on it and stay caught up. There's always something that comes up and I need to borrow the money again.

    So my first question is, would the $1300-$1400 I owe them be counted in a Chapter 7? If so, since I have my paycheck direct deposited there, I'm assuming I need to move that to another bank asap before filing, right?

    My next question involves a 2 year old car on which we are upside down by about $8 grand. IF we should decide to keep the car, what is this 722 thing all about? Is it only offered through US Bank? And if so, I don't suppose they would work with us if we just shafted them from my credit lines, right?

    So, IF we decide to keep the car, and IF this 722 thing is a good way to go, should I try to pay off what I owe US Bank before we even file?

    My personal vote would be to walk away from the stupid car--the payments plus insurance, gas, and registration are probably costing us up to $700 a month. I'm just not sure if my spouse will be willing to let it go since our other car is on its last leg.

    Any thoughts?

    #2
    Okay first things first.

    You would want to move any bank accounts to a bank where you do not have any debt with (that is no CC, no car loans etc).

    You can include the over the limit and checking account balances in a bankruptcy.

    Due to cross collateral you most likely will not be able to keep that car if you bankrupt on other debt at the same bank.

    722 is a specific part of the bankruptcy code. It is not unique to US Bank. In it you generally move to downsize your vehicle where you are letting one vehicle go to get a more affordable vehicle.
    May 31st, 2007: Petition Filed by my lawyer
    July 2nd, 2007: 341 Meeting Held
    September 4th, 2007: Discharged and Closed.

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      #3
      Have DH's truck with US Bank. Called them about 722 redemption. Was told it was for only 'new customers'.

      My son was able to get a nice used car with US bank during his Chapter 13 through their 'wholesale replacement' plan. Not a 722 redemption.



      FYI! Do a google search on 722 redemption scams and/or complaints before you choose a Company.

      Comment


        #4
        Our car loan isn't currently with US Bank, but I figured I certainly wouldn't be able to transfer it to US Bank if I ended up including those lines of credit in the bankruptcy.

        I did do a little more reading...geez, are the interest rates on 722 loans really 20+%? I can't imagine how that would end up working to anyone's advantage. I think I'd rather wait a few months and save up enough for a beater, and then keep saving and trading up, paying cash.

        This all gets so confusing!

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          #5
          That is truly remarkable. You mean US Bank keeps loaning you the same $500 and you are paying $100 interest per month? And I thought they were wonderful people for increasing my credit limit on my VISA card from 12k to 25k while I was on a cash advance phone in a casino. US Bank, working for YOU.
          filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

          Comment


            #6
            Originally posted by RNY09 View Post
            ....
            I did do a little more reading...geez, are the interest rates on 722 loans really 20+%? I can't imagine how that would end up working to anyone's advantage. I think I'd rather wait a few months and save up enough for a beater, and then keep saving and trading up, paying cash.

            This all gets so confusing!
            Excellent idea. You will find that having no payment or a small payment for a short time such a relief after your large payment .....
            Filed CH 7 9/30/2008
            Discharged Jan 5, 2009! Closed Jan 18, 2009

            I am not an attorney. None of my advice is legal advice in any way..

            Comment


              #7
              Originally posted by RNY09 View Post
              Our car loan isn't currently with US Bank, but I figured I certainly wouldn't be able to transfer it to US Bank if I ended up including those lines of credit in the bankruptcy.

              I did do a little more reading...geez, are the interest rates on 722 loans really 20+%? I can't imagine how that would end up working to anyone's advantage. I think I'd rather wait a few months and save up enough for a beater, and then keep saving and trading up, paying cash.

              This all gets so confusing!
              Yep they do have high interest rates and yes saving up and paying cash is always a good option
              May 31st, 2007: Petition Filed by my lawyer
              July 2nd, 2007: 341 Meeting Held
              September 4th, 2007: Discharged and Closed.

              Comment

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