Anyone tried a 722 redemption on car loan?

[relief13035]

I am reading information that sounds too good to be true regarding a 722 redemption loan on an existing car loan. Has anyone tried this?

[TEW]

check this out

http://www.bkforum.com/showthread.ph...722+redemption

[relief13035]

Thank you for the link. I think we are going to give it a shot. We have a 2006 Nissan Titan. My husband needs it for work. We owe $17k, but is blue booked at $12k. I post my progress.

[biotechsolution]

just check your interest rate, those 722 tend to have interest rates near 20%

[PoorAnnie]

I was just coming here to ask the same question!
Thank you for the other link to this topic too.

But I still have more questions--did you first tell your lawyer about this or did you contact the redemption company first?

[taz7290]

We used 722 redemption to replace a vehicle that at first we decided to keep but decided not to so we could get something cheaper in payments. The only kicker is if you decided to replace the vehicle, it has to be a pre-owned vehicle and the term of the loan is based on how many miles are on the car. Yes the interest is high, but it is a fresh start in rebuilding your credit. Our lawyer said if we could get financed then go for it. We did this before our 341 meeting.

[okiemom2008]

We were wondering this too. Our truck is kelly blue booked at 10k but weo we 28k(it is a 2008 durango) Our lawyer talked to us about this and said if we wanted to go the 722 route we would be making the payments at 24% interest for the kbb value. Problem is, we want to just save up until then and pay the 10k in cash but not sure if they will let us. We are completely against monthly payments anymore because of what it lead us to now.

[relief13035]

I tried to do a 722 redemption but was rejected. The lady called and said that if I was surrendering my home she could do it, but since we were keeping our home that we didn't qualify.
So now we wait - I guess we will see at our 341 if the trustee will allow us to keep the truck.