attorney redemption fee

[fyi2]

So today I get the reaffirm paperwork- I have already decideded not to reaffirm because the auto is just too upside down

I would like to redeem the auto down to market value though and I was simply waiting to learn from my attorney next week when to apply

In the paperwork today it went over options and stated that the fee of $900 would need to be paid before any work would be done by the office

I wasn't expecting that
where does this money come from...
aren't people in BK poor like me?

maybe if i had known i would have tried to save? but most likely I could not have... and besides you are not suppose to have savings

last year that would not have been an issue to come up with but now... it is a LOT of money for us

and I have heard people say they could not get a loan or that it did not benefit them... so even if i could come up with money- you pay the fee the motion is filed then??? you may or may not get it?

anyway.. now what?

Did anyone with an attorney do the process themselves?
is there an added benefit to haveing the attorney do it?

[liz417]

Agh yes, my attorney made it VERY clear what his fees covered for my Ch7. Any changes/amendments $175, I can't remember what he charged for extra work, i.e. cram downs, reaffirmations, but I know it was no less than $200 bucks. I haven't changed/added any additional work, like you, I'm broke too.

Is your car older than 910 days old?

[fyi2]

yes it is older than 910days...?

also I was looking at the website 722redemption (USBank) and the guidelines said :

"Gross debt ratio: All surviving debt payments divided by verified gross income CANNOT exceed 45%"

my schedule J is negative 2000 dollars a month !
I wonder if they will look at all expenses or just secured .. i am surrendering my house but i have not moved yet so I am not sure the number they will use for that and the only other secured was my auto...?

I also saw on the site that they would cover (add into the loan) the Attorney Fees

[livelaughlove]

I am doing a redemption thru 722. My lawyer handled all of the paperwork. But BEFORE putting in the Motion to Redeem with the courts, I applied to 722 and was approved. 722 then sent all of the appropriate paperwork to my attorney. My attorney charged me an extra $400 for completing and filing the Motion to Redeem. This $400 charge will be financed with my car, so I do not have to pay anything upfront.

Also, so many people are saying how bad the 722 Redemption is. For me personally, it is a godsend. They put a motion in for the current market value, which is about $6-8 less than what I currently owe on my car. I want to keep my car, so this works out perfect. Assuming Capital One doesn't object (deadline is July 14), my payment will go down about $200 a month!!!! I don't understand how some people's payments go up with redemption?

Does anyone know what happens if your current lender objects to the redemption? Can the court order it happen anyway?

[fyi2]

Good Question.....

Does anyone know what happens if your current lender objects to the redemption? Can the court order it happen anyway

and can I put the motion in myself

so Live what was your interest rate..

[HHM]

The current lender cannot object to the Redemption, itself, but it can object to the valuation.

And yes, you can file the motion yourself, but realize that there is no standard form for it, you will have to search for a sample.

[fyi2]

the current lender .. to continur to hold the account... to redeem it through the same bank it is currently with
ever heard of anyone going along with it?

also us bank or fresh start... opinion?

[HHM]

the current lender .. to continur to hold the account... to redeem it through the same bank it is currently with
ever heard of anyone going along with it?

also us bank or fresh start... opinion?

Nope, the current lender will not redeem their own loan.

However, you can try to negotiate a reaffirmation agreement with the current lender and have the lender agree to a reduced principal balance (it's long shot).

[livelaughlove]

unfortunately, my interest rate is outrageous (I think like 19-22% - can't remember), however, because of only "refinancing" at the market value, my payment is going way down. I figure after a year or so after on-time payments, my local credit union may work with me to refinance.