If you have applied for Chapter 7 bankruptcy or is considering filing for it, then you ought to be aware of the 722 Redemption, or Car Loan Redemption. This facet of the Chapter 7 Bankruptcy Law lets you keep your vehicle rather than having it repossessed or taken away to pay off a portion of your debt. Even though you are in debt of more money on your car than it is presently valued at, a 722 Redemption Loan could make it feasible for you to be in control of your existing financial burdens.
Chapter 7 filers can gain from this bankruptcy law, but depends on their particular cases. The Car Redemption law, 11 USC 722 “Redemption” states that a chapter 7bnakruptcy applicant that is overturned on their loan, or is in debt of more money on the car than it is worth valued at, can arrange for the courts to coerce the present lender to let go of the lien on the car to the filer so that they can have outright ownership of the vehicle.
Sounds fantastic, right? In any case, the only catch is that the bankruptcy filer has to repay the car’s worth in cash to their present lender. For instance, the car value is $4,000, amount owed to current lender is $10,000. This means that the filer must disburse $6,000 in cash to their lender in order to be granted the lien to the vehicle. Of course, most bankruptcy filers don’t have a lump sum to fully repay their cars so a great solution will be to look for a firm that works on 722 redemption loans and finance the lump sum required.
This is where a 722 Redemption Loan comes into play and relieve the arduous task of repaying their lender. The bankruptcy filer can demand for a fresh loan to have the means to repay the amount that’s due on the loan. As a result, they can reduce their monthly pay downs and the remainder of the loan so they can hang on to their car and have a new start!
The 722 Redemption must first be authorized by the Bankruptcy Court and managed by your bankruptcy lawyer. After the qualification, you can begin with reducing your monthly payments and the remainder of your loan. The charges for the legal services are included in the loan so down payments are not necessary. If you don’t have a bankruptcy attorney yet, then look for one because they are of great help in both your Chapter 7 Bankruptcy and 722 Redemption. There is a key to keeping your vehicle even after you have filed for Chapter 7 bankruptcy and that is Car Loan Redemption!
To sum it all up, the benefits of Car Loan Redemption are:
- Help reduce your current Auto Loan Rate
- Simple payment plan that agrees with your budget
- Rate Lowering System – Your financing rate will automatically be reduced with consistent, on-time payments for a given period of time
- Reconstruct your Credit – Your credit score will increase once credit agencies review it as positive
Car Loan Redemption Qualifications:
- Filed for Bankruptcy
- Currently residing in one of the States that follow:
Alabama, Alaska, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Oregon, Pennsylvania, Utah, Virginia, Washington, and Wisconsin
- Have at least 6 months of Employment
For any assistance you can consult the Contra Costa Bankruptcy attorney at: www.Korblaw.com