Redemption in a Chapter 7 Bankruptcy

Section 722 of the United States Bankruptcy Code provides consumers with an interesting option when they owe more on a vehicle than the vehicle is worth.  Consumers can redeem the vehicle by paying the lender the value of the vehicle rather than the amount of the loan and allowing the bankruptcy to discharge the old loan.  A catch to the process is that the payment to the creditor must be paid in one lump sum.

The one payment requirement can be a problem for someone who is filing a bankruptcy.  Many people have a hard time finding a lender who is willing to lend them the money needed to pay the old lender while they are in an active bankruptcy. 722 Redemption offers a unique solution to this problem.  722 Redemption is a company that offers to refinance loans on vehicles for people who are going through bankruptcy.  They will value the vehicle and determine if the borrower qualifies for a loan.  If the consumer qualifies, 722 Redemption will refinance the vehicle for the value of the vehicle.

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