Redemption - How Filing for Bankruptcy Can Significantly Lower Your Monthly Automobile Payment
"""When filing for bankruptcy, you must determine the value of all of your vehicles. When your vehicle is worth less than what you owe on it, a redemption is conceivable. When you redeem the loan, you ask the court for assistance in compelling the lender to take the current fair market value of the vehicle as full payment on the loan you owe. For instance, if your vehicle is worth $6,000 and you owe $10,000 on your loan, a redemption would enable you to pay the lender $6,000 up front, and the court would discharge the remaining $4,000 as part of your bankruptcy.
The primary advantage of redemption is that you can save a LOT of money because you only pay the value of your vehicle.
The disadvantage is that the majority of clients do not have a substantial quantity of cash to pay upfront, and redemptions do not permit installment payments. Most clients receive a redemption loan, which is typically a hard money loan with a very high interest rate from a new lender. Because this new loan will not be included in the bankruptcy, it is essential to ensure that the redemption loan is affordable. A competent bankruptcy attorney can assist you in negotiating a redemption loan that can save you thousands of dollars and reduce your monthly vehicle payment, while allowing you to retain the vehicle.
Redemptions require you and your attorney to make a special court appearance during which you must substantiate the vehicle's fair market value. Frequently, your lender will contest the value we list; therefore, it is crucial to have legal representation. Additionally, our office helps you obtain the redemption loan. Because of these additional procedures, our office charges additional fees for this work.
Contact our office at California Bankruptcy Attorney to learn more about redemption or to schedule a free consultation with our attorney.
" - https://www.affordablecebu.com/
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"Redemption - How Filing for Bankruptcy Can Significantly Lower Your Monthly Automobile Payment"
was written by Mary
under the Finance / Wealth
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comments. The article was created on 03 June 2023
and updated on 03 June 2023