Redemption of truck

[stew89]

I know that in bankruptcy you can use 722 redemption to pay the value of the vehicle rather than what is owed and you will own that vehicle.

I want to know would the trustee take payments or is it required you pay the whole thing at once?

[HHM]

There are 2 types of redemption's in BK

1. You have non-exempt property you wish to retain. Assuming the loan payments are not a hardship, you do a redemption loan and essentially buy the property back from the Trustee.

2. The second is where you do a redemption loan to buy-out the lien of a secured creditor (i.e. car finance company). Under this scenario, assuming you can get the court order allowing the redemption, you pay the CMV of the item to the lien holder who then releases the lien (vs paying the balance owed).

However, in both scenarios, you need to pay the trustee or lien holder a lump sum, you make monthly payments to the lender who is given you the redemption loan.