201312.17
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Bankruptcy Motion 722 Redemption

One of the problems that Debtors commonly face in bankruptcy is a replacement vehicle or what to do with a vehicle that has negative equity.

What is Redemption?

Redemption is the ability to redeem or pay to the lender what the car is worth and to have the lien released. If you have a good auto and you merely owe too much for it often redemption is the answer. Redemption is done by simply filing a motion that shows the value of the auto with the court in support of your request to have the lien released. You do have to pay a lump sum of money immediately for the car but a redemption motion takes at least 20 days to be approved. 722 redemption is a company in Cincinnati/Covington that will supply the funds through US bank. 722 redemption was named after section 722 of the bankruptcy code that allows you to redeem personal property. Since you can redeem personal property you can redeem a trailer as well.

Why 722 Redemption?

However you can also simply buy a different vehicle and 722 redemption will sell bankrupt client a 1-2 year old car. 722 Redemption will not only supply the money to redeem your vehicle but they will also sell you a different vehicle. Sometimes you can no longer have a friendly relationship with the bank and another 2-3 years with the bank is just not possible. There may be various reasons for not staying with the bank.

I wrote this on December 17th 2013. These cars are only 1-2 years old and look at the mileage and prices.

Vehicle

Mileage

Estimated Payment*

2012 Nissan Sentra

41,000

$347-$382

2011 Toyota Camry

33,000

$362-$418

2011 Chevrolet Aveo

39,000

$301-$337

2012 Honda Accord

32,000

$338-$390

2012 Honda Civic

44,000

$351-$402

2011 Ford Fusion

45,000

$377-$423

2011 Ford Focus

30,000

$331-$375

2010 Nissan Rogue

17,000

$418-$472

2011 Chevrolet Silverado

27,000

$438-$496