Motions to Redeem in Chapter 7 cases

Motions to Redeem can be a very powerful tool for Debtors in a Chapter 7. This motion allows Debtors to pay the value of the collateral instead of the current balances. Let me give you some examples. Say for instance you had a car only worth $3000 but you still owed 12K. This motion would allow you to pay the 3,000 and wipe out $9000. Another example is furniture. Say you owed $5,000 but the furniture is only worth $500. You could pay $500 and wipe out $4500.

The negative aspect of the motion to redeem is that you have to be able to come up with the money quickly. There are some companies that specialize in helping Debtors who want to redeem vehicles that are within 5-6 years old and only have so many miles on them.  722 Redemption is a company that could assist you in redeeming your vehicle.

- Stone Law Firm

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