Chapter 7- 722 Redemption

Filing for bankruptcy can allow you to reduce the amount you owe on your vehicle. Under a Under 722 redemption you can seek a court order that allows you to pay your car loan company a lump sump equal to the market value of your vehicle. This means that if your car loan is $20,000 and the market value of your vehicle is $15,000, 722 redemptions court approval allows you to pay off your vehicle by giving your car loan company a lump sump of $15,000. In most instances this can save you money since the market value of a vehicle in most situations is lower that what is currently owed on the vehicle. Of course, most people who are going through bankruptcy do not have a lump sum amount to pay off their vehicles. One option to this problem is to seek a company that works on 722 redemptions, who will finance the lump sump payment. Below are a few companies that work in this area:

US Bank: http://www.722redemption.com/