Bankruptcy Motion 722 Redemption, Nick Thompson – Know Everything!

One of the problems many people commonly face in a Chapter 7 bankruptcy is getting a replacement vehicle. What do you do with a car with negative equity?  Negative equity is when you owe a higher amount than the car’s or home’s fair market value. You don’t want to pay $15,000 for a $5,000 auto. But if you know the vehicle is reliable transportation, you should keep it. People file a Chapter 7 bankruptcy motion for a 722 redemption in the bankruptcy court for the case.   

What is a Bankruptcy Motion 722 Redemption?

Section 722 of the bankruptcy code allows you to file a motion or bankruptcy case and redeem your auto from the lender according to its market value. Redemption is the ability to save or pay the lender the retail value and have the lien released. You can pay cash or finance, paying off the old lender. If you have an older auto in good condition and merely owe too much, redemption is often the answer. A motion requests some action to help process the case. You can only redeem personal property like a boat, car, or furniture in a Chapter 7.  You can’t redeem a home or modify a first home mortgage.

Redemption is done by simply filing a motion showing the auto’s fair market value with the court order supporting your request to release the lien. You must pay a lump sum of money immediately for the interest rate of the car, but a redemption motion takes at least 20 days to be approved. Instead of paying the contract price, you are paying the lender what he would have gotten if he sold the auto.

722 Redemption is a company in Cincinnati-Covington that supplies the funds through US Bank. The company 722 Redemption is named after section 722 of the bankruptcy code that allows you to redeem the personal property. In addition to redeeming cars, you can also redeem boats, 4-wheelers, furniture, and other personal property.

722 Redemption ReviewsKeeping Your Car in Chapter 7 Through Redemption

If you’re a chapter 7 debtor, there is an excellent probability you may owe more money on the vehicle, either car or a truck than it is worth but still want to keep it. You have four different options of what to do with your car in this case.

You have these four possibilities if you are currently filing a bankruptcy petition. These options include:

  • Retain your car and continue paying the debts without doing a reaffirmation.
  • Reaffirming your debt and continuing to make payments allows the creditor to report any on-time payments but you return to owing the debt.
  • Give back or surrender the owned vehicle to your owner.
  • Redeem the car under section 722 of the bankruptcy code.

Redemption Allows you to Keep a Vehicle you Owe Too Much on

In the majority of the cases, debtors don’t want to surrender their vehicles. But they rarely consider the option of redeeming the car. They are used to making payments.   In such circumstances, the company 722 redemption allows the debtors to redeem their vehicles for a lump sum and continue to make payments but to a new company.   722 will finance the lump sum of money to do the redemption.

By doing so, you will be able to pay the amount which is a lump sum payment equal to the current retail value of your vehicle.

Bankruptcy Chapter 13

722 Redemption Might be Better than Reaffirmations

With 722 Redemption, you can also buy a different vehicle. 722 redemption sells bankrupt clients 1-2-year-old cars many of these cars were trade-ins from a Mercedes dealership in Cincinnati.  722 Redemption will supply the money to redeem your vehicle as a loan with US Bank. But you can also purchase a different car.

Sometimes you no longer have a friendly relationship with the bank. Or, another 2-3 years with the bank is just not possible. In addition, there may be other reasons for not staying with the old bank.

It is also worth noting that the 722 loans are reported to the credit bureau and the loans are with a standard bank. Loans with banks build credit faster than credit unions and finance companies. Most “buy here, pay here” companies do not report to credit bureaus unless the report is negative. Of course, they do this to keep customers coming back to the “buy here, pay here.”

These are the cars 722 Redemption had when I wrote this on December 17th, 2013. You will notice that these cars were only 1-2 years old when I wrote this. Also, look at the mileage and prices.



Estimated Payment*

2012 Nissan Sentra



2011 Toyota Camry



2011 Chevrolet Aveo



2012 Honda Accord



2012 Honda Civic



2011 Ford Fusion



2011 Ford Focus



2010 Nissan Rogue



2011 Chevrolet Silverado




Some common questions which you may have on dealing with vehicle debt in regards to a 722 motion to redeem include:

What does 722 Redemption Do?

When you think of paying for your personal property like a car, a 722 motion redemption can help by reducing the amount you pay back when you have negative equity.

You don’t have to surrender and buy a new auto. You avoid the sales taxes. dealership markups, pushy car salesmen, and other hassles of buying a replacement vehicle.  Redemption enables you to keep the car and not have to pay off the current lender.  If you have a quality older auto but you need to lose the lender or the auto has too much negative equity redemption is the answer. 

How Does 722 Redemption Work in Chapter 7?

The primary reason behind the use of redemption is to reduce the amount you have to repay for the auto.   

It works when you own a car and are under chapter 7 of bankruptcy.  A motion can be filed in court to redeem your vehicle. You are primarily refinancing the auto once the court grants the motion. 

Contact Our Law Firm to Redeem a 722 Redemption

Being a debt relief agency, we have experienced attorneys to redeem your car.

At the Law Office of Nick C. Thompson, you’re ensured to get a bankruptcy and foreclosure attorney to protect you from the negative equity problems of your vehicle. Give us a call now!
Free Bankruptcy Manual Nick Thompson Bankruptcy by Nick Thompson, Bankruptcy Attorney

Resources for Bankruptcy

Louisville, Kentucky Bankruptcy Forms

How to Manage Your Car Loans in Bankruptcy

Chapter 7 Bankruptcy Auto Loan Redemption

How to Manage Your Car Loans in Bankruptcy

Options to Avoid Foreclosure with Bankruptcy

If you are thinking about filing bankruptcy, don’t delay because timing is crucial. I am here to help you. So, contact our debt relief agency for a free consultation—Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.

Our Services

Start Your Intake or Contact Us

If you want to start your intake, we need your Name, email address, and phone number so it can be set up and you can complete your intake at work or home. If you have questions send us a message with your email address so we can respond. We practice in Louisville, Lexington, and New Albany, Indiana.

  • This field is for validation purposes and should be left unchanged.

Download Our Bankruptcy Manual