I'm having issues with DH on trying to tell him we need to get rid of his truck. We bought it 4 years ago (It's an '01) and we still owe $10,000 on it! I explained that we need to get something newer rather than keep paying on one that we owe for another 2 years and is already nearly 9 years old. It was going to be reaffirmed in our 13, but when we converted to a 7 our atty advised us to just keep paying. Since he lost his job and just found a new one, we are nearly 2 months behind. Our BK should discharge in about 15 days, hopefully. My 2000 VW is paid for. Can you offer any suggestions I'm missing?
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I agree with you I would also dump the truck. But I don't know what you can tell him to change his mind. I'm trying to talk my dh into letting my car go back right now and he's dead set against it.4/09 Converted to a Ch 7 due to loss in dh's income
5/09 UST now involved no idea what happens next
7/09 UST has decided to withdraw his motion to dismiss!
7/27/09 DISCHARGED!!!
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The Bankruptcy Code provides two options for a debtor who wants to keep secured collateral that is subject to an outside loan. Option one is called “reaffirmation” and option two is called “redemption”.
Section 722 of the Bankruptcy Code provides that a debtor can redeem secured collateral for an amount equal to the secured portion of the loan. In other words, if you have a vehicle worth $7,500 subject to a $17,000 loan, the secured portion of the loan is $7,500 and the unsecured portion is $9,500. You can therefore redeem the vehicle for $7,500.
In order to redeem you and your lawyer have to file a Motion for Redemption of Collateral and you must be prepared to buy out the secured lender immediately.
Not surprisingly, there are several lending sources that have arisen to provide financing to debtors seeking to redeem collateral. You and your lawyer should carefully examine the finance terms of redemption loans. In some cases, you can save money but in other cases, the cost of a redemption loan might cancel out the savings you might see from a standard reaffirmation.
Did you or your lawyer pursue these avenues?Comment
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thanks so much!Comment
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