Has Anyone Heard of 722Redemption.com?

[Chptsevenchains]

Hello Kind All,

I am brand new to this message board. I am SOOO thankful that I was able to find this source of communication and information amongst others who have "been there"

I completed an application with 722Redemption.com today. I am really nervous about the response from this company because I have to surrender my vehicle. I am going to speak with my attorney on Monday about the 722 option.

I'm not for sure how things work for conversion bankruptcies; will the trustee agree to allowing me the opportunity to finance another vehicle after I surrender my 2006 vehicle? I read on another post that it was illegal to purchase a large ticket item while in Bankruptcy. I live 19 miles from work, so a car is a major must.

Also, My residential lease is coming up in October and my rent will be going up by $100.00. If I found another place to reside, that is cheaper, would I be able to move while in a Chapter 7 petition?

I need clarity on this quick! I haven't really slept in about a week or so, and any information for the kind people on this board who have, "Been There" will be somewhat of a great comfort.

Thanks for taking the time to read

[BassBoy]

722 Redemption carries a high interest rate.............I've read/researched it can be 24%.

If you are converting, you shouldn't/can't really take on new debt while in BK. You should wait until after you receive your discharge. Not to mention, most lenders will not grant a loan while in active BK.

On the other hand, 722 Redemption will put you in a reliable car and will not allow you to finance for long terms (i.e., 72 months or longer). In the long run, it may be your only choice, so be sure to do your diligence and ask as many questions as you can think of.......even the questions you feel are dumb.

[lrprn]

Welcome to BK Forum C7C- glad you found us!

I have a 2006 vehicle through Capital One and because of my arrearage prior to petition, they are requesting that I bring it current ($2800.00) prior to redemption, or surrender it. My Attorney feels that surrendering the vehicle is the best chioice that I have.

Sounds like the best option if you don't have $2800 to catch the payments up before filing. Otherwise you'll lose the car to repossession. Cars and home payments must be up to date when you file Ch 7 if you want to keep them.

I have been searching about and found this 722redemption.com the website states that they can provide "replacement" vehicles for clients in my situation that will be the same or similar to the car that I am surrendering. I called and they seem on the level.

They are on the level. However, the interest rates you will be charged are going to be outrageous - could be 25% or higher. You could be jumping out of the frying pan into the fire.

Before you go this route, figure out how much you can realistically pay a month for a car payment. My guess is that what 722 offers you is going to be over that once the interest is added on.

You are coming out of Ch 13. What were you paying your trustee every month? Can you hold onto your current car long enough to save up enough for a "beater" in cash? Can you pay friends or family for rides for 4-5 months until your Ch 7 case is discharged and closed? Just some thoughts - this is a great time to be thinking outside the box and avoid getting into even more debt as you head into Ch 7 if it isn't absolutely necessary.

[Chptsevenchains]

I Had to Change it Up a Bit, But...

I had horrible credit prior to my Chapter 13 Petition so the vehicle I purchased through Capital One was at 24.75%

I did a little research and determined that I can afford a loan on about $ 13000.00 at 18% to 22%; this will give me a monthly car-note of approximately $360(+/-) I can afford this since I will be free of all previous debt.

And, I wish that I had the family / friends around to support me; but the reality of it all is, if I did; I would hope not to be in this bind.

I noticed that most of the debtors that file Chapter 7 are not discharged for 3 months or more. If I went that long without a vehicle; I might as well quit my job on the same day that I surrender the vehicle...

I don't see a silver lining here; I don't even see a glimmer of a shadow, that a hint of a start of a silver lining would give...

[JRScott]

Can you maybe ride with someone to work?

Also I wouldn't look into getting as expensive a car. Try to get something farther down. Keep it below 5000 if you can. You can get a car that'll last 3-4 years that way that won't unduly burden you.

[cathywhite4495]

I've been looking into those 722 loans too. I can afford my car payment but the interest is sky high. JR has a really good point of getting a cheaper car. Your payments would be lower which would allow you to save more money and improve your credit score enough to get a decent interest rate on another car in a few years.
I'm toying with the same idea myself. I miss living in a place that has public transportation! I was able to go years without a car for years before because we had a good bus system. I woud rather pay for a monthly bus pass any day rather than the car payment, insurance, parking etc etc.
Do you have a bus system or co-workers you could carpool with? Maybe pay their gas in exchange for riding with them?

[SinkingFast]

There was a Member here from a while back that actually did a 722 Redemption Loan. I dug out her post for another person.

Take a look at this thread:

http://www.bkforum.com/showthread.php?t=16355

If you click the link in my response, you can read about StaciMM's experience with them.

[slg1234]

I have applied for a redemption at the advice of my attorney as well, however its under different circumstances. I am upside down on my car but really want to keep it..she suggested I apply to reduce the principal of my loan..i.e...instead of owing $15,000 I would only owe about $8500(fair retail value set by the 722 people). The monthly payment would only be about $40 less due to the higher interest but if I kept paying the same monthly payment I am now I would have it paid off much sooner. Any one do anything like this?

[CityGirl]

Thats what I want to do then. I'm $13K upside down on mine. This would probably be worth it to me. How long is the loan for?

[slg1234]

The figured mine for 4 years..about what I have left on my loan now. I believe that is the longest they will finance for. Also, I'm totally trusting my attorney on this but she told me not to make any more payments on my car (which i was going to reaffirm before she suggested the 722). She stated that I should save my money and wait until my 722 loan starts but I have read that the auto finance company can (and often does) object to the value that the 722 people put on your car. HOpe that doesn't come back to bite me .

[SinkingFast]

There is another approach you can take.

If the car is mechanically sound and you are pleased with it,........... You can try to negotiate better terms with your current lender.

While the law says you can't cram down, it doesn't say you cannot renegotiate the terms of your agreement. You can haggle with the Lender to get the loan amount down to FMV of the car. Even negotiate a better rate of interest and payment term that suits your budget. Everything is up from grabs in a Reaffirmation Agreement.

If the Lender doesn't go for it, then Surrender the car as planned and seek out a 722 Redemption Loan.

No harm in trying. All they can do is say no.

[CityGirl]

I couldn't live without a car to come and go.I hate buses.
Plus, I like to go where I went when I want and not rely on a bus schedule. We don't have public transportation but I like the ability to come and go anyway.

I've been looking into those 722 loans too. I can afford my car payment but the interest is sky high. JR has a really good point of getting a cheaper car. Your payments would be lower which would allow you to save more money and improve your credit score enough to get a decent interest rate on another car in a few years.
I'm toying with the same idea myself. I miss living in a place that has public transportation! I was able to go years without a car for years before because we had a good bus system. I woud rather pay for a monthly bus pass any day rather than the car payment, insurance, parking etc etc.
Do you have a bus system or co-workers you could carpool with? Maybe pay their gas in exchange for riding with them?

[SinkingFast]

Thats what I want to do then. I'm $13K upside down on mine. This would probably be worth it to me. How long is the loan for?

If you file a Ch 13, you cannot do a 722 Redemption Loan.

722 refers to the Section of the Code that allows for the Debtor/Filer to Redeem Secured Assets in Ch 7 BK. It's not applicable in a Ch 13 BK.

[rrockinggramma]

I also have done a 722 Redemption loan. the previous poster is right. You refinance only the FMV of the loan but with the interest rate, your payment only goes down about 25 to 50 dollars. However, that being said, it allows you the opportunity to keep your car or get another one you can afford. For those of us in BK, sometimes it is your only option. It worked out well for us and even the 40.00 difference in our payment was a god send at the time.

[slg1234]

rrockinggramma.....Did your finance company have any objections to the FMV that 722 put on the car? I was told that they have no choice if you want to do a 722 but they can object to the value that is put on the vehicle. When I first discussed it with my attorney she said it was no problem and when I asked her about it after I applied for it she said I may have to go out and get some estimates on my own because lately a lot of the creditors have been objecting to the FMV 722 put on the vehicle.