redemption

Redemption of Personal Property in Bankruptcy

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Redemption of personal property in bankruptcy is a powerful tool. It allows debtors to keep secured property, such as a car, furniture, solar panels, and soft water systems. This is accomplished by paying the creditor the actual value of the property shortly after filing Chapter 7.

Redeeming a Vehicle in Chapter 7 Bankruptcy

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Most debtors filing Chapter 7 bankruptcy want to be able to keep their vehicles. An Arizona bankruptcy lawyer may advise the debtor to pay the lender only the current retail value of the vehicle in lieu of the entire loan balance. However, redeeming a vehicle loan has its drawbacks.