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Auto REEDEM during CH.7 is really an option??

Valued Member

Auto REEDEM during CH.7 is really an option??

I filed on 03/30 and told my lawayer I want to keep my car and continue to make payments, so we would reaffirm the loan but now I am reading that there is this option called Reedem. Can this really be true? I owe $18,680 on a 2015 Fiat and the KBB value is $8650. Is true can I just pay off my car for the fair market value? Where would I get it appraised?  I know I can gett the mooeny from my family to pay it off. 

BK7 Filed 03/30/17
341 Meeting 05/03/17
Finally DISCHARGED!! 10/30/17

Cap One Plat CL $3000
Message 1 of 16
15 REPLIES
Established Member

Re: Auto REEDEM during CH.7 is really an option??

It's true. My lawyer charged 450 for mine. We used Edmunds and Kelly blue book, documented everything wrong with the cat. Got lucky in that they didn't protest. It's better to use a real appraiser.
Message 2 of 16
Established Contributor

Re: Auto REEDEM during CH.7 is really an option??


hawaiilover441 wrote:

I filed on 03/30 and told my lawayer I want to keep my car and continue to make payments, so we would reaffirm the loan but now I am reading that there is this option called Reedem. Can this really be true? I owe $18,680 on a 2015 Fiat and the KBB value is $8650. Is true can I just pay off my car for the fair market value? Where would I get it appraised?  I know I can gett the mooeny from my family to pay it off. 


Yes it is very true... I did it with my current car as i filed for BK on 3/30 as well...go to 722redemption.com and fill out all the necessary information and they will call you or you can call them. It was a very easy process they send you a form through email you identify all scratches, damage and everything on the car and they go to work for you...

CH7 Filed (3/29/17) - 516 EQ, 517 TU, 483 EX -- Discharged (5/31/17) - 538 EQ 501 TU 559 EX
PenFed CLOC $500 - NFCU nRewards $1k - CreditOne $500 - VS $250 - Overstock $250 - KingSize $250 - Macys $5.8K (AU) - AmEx $1k (AU)
Message 3 of 16
New Contributor

Re: Auto REEDEM during CH.7 is really an option??

I hadn't heard of this before.  I'm curious though.  So let's say you pay it off or "redeem" it.  Doesn't it then go into the assets you are trying to keep?  Which for me was limited to $10k including a cars, jewelry, etc.

CH7 BK Discharged Aug 2016May 2017 ScoresEQ08 615TU08 604EX08 612
Message 4 of 16
Established Contributor

Re: Auto REEDEM during CH.7 is really an option??


GatorsFan84 wrote:

I hadn't heard of this before.  I'm curious though.  So let's say you pay it off or "redeem" it.  Doesn't it then go into the assets you are trying to keep?  Which for me was limited to $10k including a cars, jewelry, etc.


I think it varies for evvery situation my only asset was my car so it wasnt anything else I was trying to keep besides it so everything worked fine. I dont really know if it changes if you are trying to keep other things or how that works but it doesnt seem so beccause they never asked me what else am i keeping. They just asked you BK Case number and thats it really besides the natural personal info.. and car description.

CH7 Filed (3/29/17) - 516 EQ, 517 TU, 483 EX -- Discharged (5/31/17) - 538 EQ 501 TU 559 EX
PenFed CLOC $500 - NFCU nRewards $1k - CreditOne $500 - VS $250 - Overstock $250 - KingSize $250 - Macys $5.8K (AU) - AmEx $1k (AU)
Message 5 of 16
Valued Member

Re: Auto REEDEM during CH.7 is really an option??

Shaun the website you posted what is it? I tried to understand but didnt want to put in any info before speaking to my lawyer. My lawyer hasnt replied yet to emails yet . If anything tomorrow I'll head to his office. I am a few days late on my car payment I was going to make it today but wanted to find out about this reedem option. When is the lump sum usually due? Before the 341 meeting before discharge?

BK7 Filed 03/30/17
341 Meeting 05/03/17
Finally DISCHARGED!! 10/30/17

Cap One Plat CL $3000
Message 6 of 16
Valued Member

Re: Auto REEDEM during CH.7 is really an option??

Also quick question my mom co-signed my car back in 2015. If I were to reedem the veichle would she still be liable for the amount they "wiped out"?

BK7 Filed 03/30/17
341 Meeting 05/03/17
Finally DISCHARGED!! 10/30/17

Cap One Plat CL $3000
Message 7 of 16
Established Contributor

Re: Auto REEDEM during CH.7 is really an option??


hawaiilover441 wrote:

Also quick question my mom co-signed my car back in 2015. If I were to reedem the veichle would she still be liable for the amount they "wiped out"?


The initial site information is just for appearance imo reason being its just to show you what your payments would be if you were to redeem sort of like a pre-qual. After is when you fill out the necessary documentation. It basically asked all the basics to identify yourself, then they ask you BK case number.... Its essentially like refinancing except they are redeeming the car (negotiating) better terms for you to finance with them.... So they bring your car down to value its worth and take away your upside amount... So co-signer or not you should be fine. Its pretty straight forward....Nothing to worry about easy process..

CH7 Filed (3/29/17) - 516 EQ, 517 TU, 483 EX -- Discharged (5/31/17) - 538 EQ 501 TU 559 EX
PenFed CLOC $500 - NFCU nRewards $1k - CreditOne $500 - VS $250 - Overstock $250 - KingSize $250 - Macys $5.8K (AU) - AmEx $1k (AU)
Message 8 of 16
Valued Member

Re: Auto REEDEM during CH.7 is really an option??

So it's an option for them to loan you the money to reedem? 

BK7 Filed 03/30/17
341 Meeting 05/03/17
Finally DISCHARGED!! 10/30/17

Cap One Plat CL $3000
Message 9 of 16
Established Contributor

Re: Auto REEDEM during CH.7 is really an option??


hawaiilover441 wrote:

So it's an option for them to loan you the money to reedem? 


It is but i think approval is guaranteed i had no problems.. at least and mine was a 14 Hyundai Elantra being 10K upside down.

CH7 Filed (3/29/17) - 516 EQ, 517 TU, 483 EX -- Discharged (5/31/17) - 538 EQ 501 TU 559 EX
PenFed CLOC $500 - NFCU nRewards $1k - CreditOne $500 - VS $250 - Overstock $250 - KingSize $250 - Macys $5.8K (AU) - AmEx $1k (AU)
Message 10 of 16