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722 Redemption for car thats NOT underwater

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    722 Redemption for car thats NOT underwater

    Ok I have a 2007 Nissan Frontier that I owe $12,600. The KBB value on the truck is $14,800. (The loan is through a credit union thats cross-collateralized. And I have a CC that I want to discharge...so there is no way I'm reaffirming this debt.)

    My question is will I have to pay the $12,600 or the "street value" of $14, 800 to keep the car?

    And question #2, my dad said he would sign a loan for me to redeem the car. Is that allowed?

    Thanks for any advice.
    BK filing Mar. 23, 2010
    341 meeting May 5, 2010
    Discharged!! July 6, 2010

    #2
    what value did you use (private party, retail, etc)? Are you behind on the payments?
    Take $10 billion from the government and then sue me...nice

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      #3
      My question is why are you redeeming a vehicle that is not underwater? Basically the entire point of a redemption is to pay retail value for a car that you owe way more for. So my question is why?

      Comment


        #4
        My guess is to avoid cross-collateralization.

        Originally posted by Brazzy View Post
        My question is why are you redeeming a vehicle that is not underwater? Basically the entire point of a redemption is to pay retail value for a car that you owe way more for. So my question is why?
        As to the OP's question - have you already filed? If not, you're not talking about a redemption but a refinance to a different lender. If you get another loan (such as with your dad's help) the new lender pays off the current lien holder and the title is sent to the new lender.
        Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
        (In the 'planning' stage, to file ch. 13 if/when we have to.)

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          #5
          I used the middle trade-in value on KBB to come up with the value on my car.

          And yes, the only way to get the car is to redeem it (722) because of the cross collateralization from the credit union. And I am current on the payments.
          BK filing Mar. 23, 2010
          341 meeting May 5, 2010
          Discharged!! July 6, 2010

          Comment


            #6
            If you go through US Banks 722 Redemption program, they do all the valuation leg work for you.

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