Bankruptcy Motion 722 Redemption, Nick Thompson – Know Everything!

One of the problems that most people commonly face in a Chapter 7 bankruptcy is a replacement vehicle. What do you do with a car with negative equity or a higher price than the 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 bankruptcy case motion for a 722 redemption in the bankruptcy court. Redeeming the auto allows you to pay the lender the car’s retail value instead of what is owed for it.

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 current value. Redemption is the ability to save or pay the lender the retail value and has 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 Chapter 13. You can’t redeem a home.

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, you pay 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. Of course, 722 Redemption is named after section 722 of the bankruptcy code that allows you to redeem your personal property. In addition to redeeming cars, you can also redeem boats, 4-wheelers, furniture, and other personal property.

722 Redemption Reviews

Keeping Your Car in Chapter 7 Through Redemption

If you’re a chapter 7 debtor, there is an excellent probability that you may owe money on the vehicle, either car or a truck you have and still want to keep in use. You have got four different options to redeem how much your car is worth in this case.

You can have these four possibilities if you are currently at the filing of the petition. However, these conditions include:

  • Retain your car and continue paying the debts
  • Reaffirm your debt
  • Give back or surrender the owned vehicle to your owner
  • Either reaffirm your vehicle or redeem the car under the section 722 bankruptcy code

But in the majority of the cases, debtors don’t agree to surrender their vehicles. They also don’t consider the option of making payments for the car. In such circumstances, 722 redemption law in Chapter 7 allows the debtors to redeem their vehicles. Chapter 13 doesn’t support 722 redemptions.

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

Bankruptcy Chapter 13

⎆ 722 Redemption Might be Better than Reaffirmations

However, you can also buy a different vehicle. There is a company that sells bankrupt clients 1-2-year-old cars. This company is called 722 Redemption. 722 Redemption will supply the money to redeem your vehicle as a loan with US Bank and help you obtain financing. They also give you the option of purchasing 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 report 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.

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

FAQS:

Some common questions that may appear in your mind while dealing the vehicle debts in regard to 722 motion redemption are given as under:

What does 722 Redemption Do?

When you think of paying all the lump-sum credit amount for your personal property like a car, 722 motion redemption can help. It will enable you to pay the car or truck’s retail or lump sum payment at once. Thus, you don’t have to get troubled to pay the debts over a more extended period.

How Does 722 Redemption Work in Chapter 7?

The action of any 722 redemptions in chapter 7 of bankruptcy comes when you want your vehicle back. The primary reason behind the use of this redemption is to reduce the higher risk of payment to the lender.

It works when you receive the car loan and own a car and are under chapter 7 of bankruptcy; a motion will be filed in the court to redeem your vehicle. Further actions will proceed once the court grants the motion. After that, the lender will deposit an equal amount to the load. It will be based on the constant retail value of the car.

Can I Get a Car Loan with a 722 Credit Score?

You can get a car loan with a 722 redemption credit score, as it is considered good when you think of getting any asset. In addition to this, the majority of the lenders also prefer doing business with borrowers with a prominent credit score like 722.722 Credit Score

Contact Our Law Firm to Redeem a 722 Redemption

Being the best debt relief agency, we have experienced attorneys to redeem your car’s worth and file a motion bankruptcy case in court. Don’t bother about the lengthy procedures involved in the bankruptcy code. 

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

Contact Us with Mailing Address

Fill out the contact form stop by or Call 502 625-0903 to request your free copy of our book. We practice in Louisville, Lexington and New Albany Indiana.
  • This field is for validation purposes and should be left unchanged.

Download Our Bankruptcy Manual