Motion to Redeem
Probably one of the least talked about areas of a chapter 7 has to do with a motion to redeem. This is an unbelievable tool that many clients can get a lot of benefit from. The motion to redeem allows a debtor to pay the lender what the value of the item is worth – not what the payoff balance is. For instance, I had a client call my office last week who had a car worth $2500 but had $12,000 left to pay on the car. By redeeming the car through a chapter 7, he can pay the $2500 – keep the car and extinguish the note. Pretty wild isn’t it? Some of you may be wondering where does he come up with the $2500 if he is filing for bankruptcy? Easy – there are several loan companies out there that solely provide redemption loans to people filing a chapter 7 bankruptcy. Give me a call to find out more and how this can help you at (646) 233-0645 at 201 West 74th St, 8th Floor, New York, NY 10023.
Tags: bankruptcy, Chapter 7, redeem