Redemption: Ok now I'm really confused.

[doni49]

I asked a question recently about the timeline for a 722 Redemption (http://www.bkforum.com/showthread.ph...ption-Timeline and was told that I do NOT negotiate with the creditor to agree on a value. That I have to first serve a motion to redeem on the creditor and file it with the court. THEN after doing that, I can negotiate with the creditor to attempt to come to a compromise on a value.

I pulled out my NOLO "How to File for Chapter 7 Bankruptcy" (16th edition) and I'm looking at the section headed "How to Redeem Property". It says (emphasis mine):

Before you can redeem property, you and the creditor must agree on what the property is worth. If you believe the creditor is setting too high a price for the property, tell the creditor why you think the property is worth less......If you can't come to an agreement, you can ask the bankruptcy court to rule on the matter............

You and the creditor should sign a redemption agreement that sets forth the terms of your agreement and the amount you are going to pay, in case there is a dispute later.

The creditor may refuse to let you redeem property, because the creditor claims that it isn't one of the types of property you can redeem or you can't agree on a value. If so, you need to file a formal complaint in the bankruptcy court to have a judge resolve the issue.

So now I'm even more confused than I was when I started. Can someone PLEASE help me figure this out? From the way I read that, it sounds like I only serve/file the motion if we (creditor and I) can't agree on the value.

TIA!

[despritfreya]

NOLO is not incorrect but it is not a complete answer either. You can negotiate and, if you cannot come to an agreement seek court intervention. The problem with NOLO's comment is that it fails to warn you that the stay lifts within 45 days after the 341 if you have not acted on your intentions. Negotiating is not acting on your intentions. Filing the Motion to Redeem is. Therefore, if you cannot come to an agreement in time, you should file the Motion. Once filed, you certainly can continue to negotiate.

Hope that helps.

Des.

[primrose]

If you filed a motion to redeem but still the bank refuses and file a lift of automatic stay how can you stop it? I mean what kind of form/motion/complaint do you need to file to the court? what is it called?

[despritfreya]

If you filed a motion to redeem but still the bank refuses and file a lift of automatic stay how can you stop it? I mean what kind of form/motion/complaint do you need to file to the court? what is it called?

You file a timely Response to Motion to Lift the Automatic Stay. You state the the lender is adequately protected because the vehicle is fully insured and you are in the process of exercising your right to redeem. You state that the Motion to Redeem was filed, that the creditor was sent a copy and you have requested a hearing on the Motion.

Des.

[justbroke]

I have never tried to negotiate because it never works. Just go for the Motion to Redeem. After I filed it, they responded, objecting to my valuation, and then I responded to their response... they changed their tune. They would not have budged had I not filed the Motion and the response to their objection to my motion to redeem.

As I wrote in the other thread... I have never heard of filing a "complaint" on redemption. These are done as a contested matter by motion. File the motion and have them show up and prove the value that they came up with.