refi

can you refi a car that was included in a banko that was not reaffirmed? i got my car before filing at 16%, i've been paying on time for over a year and a half, and almost a year of that was after filing. i like the car and i don't want to get a new one just yet, i just want a better rate.

i just found 722redemption.com. looks like i may want to contact them.

i just found 722redemption.com. looks like i may want to contact them.

You are talking about redemption, the third option besides surrender or reaffirmation to keep a car or other secured property when filing bk.

Under the current version of Section 722 of the Bankruptcy Code, a debtor must pay the full amount of lien to redeem the property (except for a car that was purchased more than 910 days before the filing date). The problem is most debtors who file bankruptcy do not have ready cash [or a rich relative] to pay the fair market value in one lump sum. There are companies who provide redemption financing. The interest rates can be high, but a redemption loan might allow the debtor to reduce the monthly vehicle payments.

There are a number of companies that offer Section 722 redemption financing such as the one you mentioned - 722redemption.com - and Fresh Start Loan Corporation is another one.

When considering obtaining financing for a redemption to pay off the property in one lump sum, you should investigate the terms before filing for bankruptcy to make sure that you meet the qualifications for a loan. Also the APRs on these loans can be outrageous - up to 25% - so proceed with extreme caution. If you have a lawyer, be sure to discuss this with him/her before proceeding.

Welcome Sickthing,

722 redemption is 24%, based on when I contacted them a few months ago. If you're at 16%, and have paid on the loan for over a year-and-a-half, you'll own the car in a few years. A car that you own the title to is the best damn car you'll ever have. Anyways, your BK has been over with for a year now, and I don't see why you can't refi at a better rate with BK friendly bank or credit union. I will say this though, you should have your car paid off in two-and-a-half years (if it was a 60 month term) and I WOULD NOT recommend refinancing for any longer than the remaining months. If you can't afford to do that, then keep the car, pay it off, own it for as long as possible and then consider a new/newer vehicle.

Just my 2 cents.

BTW, I like your siggy.

thanks for the replies. i'll go searching for a refi since i'm too late for redemption. and it sounds like that wouldn't have been a great option for me anyhow.