722 Auto Redemption

[kissrawks]

Hi there. I had my bk discharged in Jan 06 and am about to finalize the 722 redemption for my minivan. After turning down the first offer, they countered, my lawyer countered (without consulting me on the amount) and they came up with a figure larger than I expected.

What value guide do these guys use? Kelly Blue Book, Edmonds? Retail Used, Trade-In, Private ?

Thanks

[newstart]

I did a 722 redemption and the company the vehicle was previously financed through was using NADA, they usually give out higher prices (to their benefit) than the others you named.

[FilingOnMyOwn]

They probably use black book figures. The black book is available only to licensed dealers and not the general public, its also used by insurance companies and maybe the lenders. I saw a glimpse of one once, I believe it had 2 figures for each car, wholesale and retail. You, the customer, pay retail.

[StaciMM]

There isn't one set resource that they have to go by. Your district/trustee might have a tendency to use one or another (KBB, NADA, etc.) if it reaches him-meaning your attorney can't work something out with the lien holder.

One concern-you said you were discharged. Generally the redemption needs to be done & filed with the court before discharge. Ask your attorney about this!

[poorme]

I'm currently in a 7, and dealt with another company - not 722 Redemption. They used Kelly Blue Book...there are 3 values. 1) Trade-in value thru dealership; 2) Retail purchase thru dealership, and 3) Private Party sale. The company looked up my car and used the Trade-in value as the value. I questioned why the finance company would accept that (it's by far the lowest of the three) and they told me that 80% of the time the finance company will accept it - otherwise they will write off the full amount or have to take the car back and dispose of it.

In response to Staci's question...true, the loan is probably written off in the BK but you won't be able to keep the car...so if the bank will take the redemption offer you will owe less than you do now and have a lower payment, probably.