Chapter 13 722 redepmtion Loan

[reb512]

I'm currently paying my car through my chapter 13, but today I started having issues with my transmission. I'm almost at my year mark in my chapter. I have little over 2 years yet to go. I was put in a 39 month plan. My question is I've read the 722 redemption website that I could replace my current car with a late model one. Now i know I would still be responsible for my chapter payments as well as my car payment. Has anyone had any luck with this?

[HHM]

722 is just for chapter 7's, sorry.

[LuciluS]

722 is just for chapter 7's, sorry.

I respectively disagree. Here is a link to US Bank's 722 redemption for Chapter 13 filers.

http://www.722redemption.com/debtor_wrp_ch13.aspx

CHAPTER 13 WHOLESALE REPLACEMENT PROGRAM

WHAT: Our Chapter 13 Wholesale Delivery Replacement Program allows you to purchase an affordable, reliable, late-model, low-mileage vehicle while inside a Chapter 13 Bankruptcy

[HHM]

Ok...BUT, US Bank's 722 Redemption Funding program is merely the blanket term they use for their BK financing.

For Chapter 13's, all they are doing is providing a car loan while you are in a chapter 13, which ANY lender can do.

722 Redemption is specific to the following scenario. 722 redmeption has to do with BK code section 722, which, guess what, is for CHAPTER 7's (go figure).

1. You are upside down in your car. You owe $20K, but the car is worth $10K (or, you have non-exempt equity and need to buy the item back from the trustee).
2. You file chapter 7.
3. You file a motion to value the car at the current fair market value (i.e. $10K)
4. The court agrees to the valuation.
5. You get a loan for $10K to buy out the "secured portion" of the debt so you can keep your car.

What you are talking about in a chapter 13 is simply buying a different vehicle, that has NOTHING to do with BK code section 722.

How is that for a smack down But seriously, Lucilus, I do need to mention this, after reading some of your post, the advice you have been sharing is questionable at best. Please make sure you know 100% what you are talking about before you post.

[reb512]

Thank you HHM for clearing that up. Seriously, getting another loan would be the exactly the last option I would take. hopefully I can get my car fixed reasonably and done right and I won't have to rely on getting a loan. I only have two more years to go. I can see the light at the end of the tunnel. I just came by that website and that's what they stated they could do for a Chapter 13 debtor. I looked up a little bit of information on the company and there were a few complaints. So I'm a little cautious on what kind of car they get for you as well as the loan terms, it would really be terrible if I were to end up with a car worse than the one I have now.