Can car loan be crammed down in Chapter 7?

[basketsbears]

Hi,

I didn't know if a car loan could be crammed down in ch. 7? I don't know which way we could go yet, but wondered if that was an option.

[justbroke]

Yes, it's called a redemption. You will need to either have the cash or find financing to pay for it. Look at 11 USC 722 which is the redemption area of the code. If you can't afford to pay it, you an seek a Redemption Loan. USBank is one such lender that operates under 722Redemption. The rates are high, but if you do it like me, and refinance quickly after discharge, then it could be worth the redemption.

I saved over $10K with my redemption! I used USBank to redeem and then, 6 months after discharge, refinanced the vehicle at a much much much much lower rate! Of course, your mileage may vary. (Pun intended.)