Would you do a 722 if you were me?

[justbroke]

at the actual value, rather than what you owe.

What she said!

[jeb]

Ah - Tks.

Then if I owe some $15,000.00 on my car which is about it's retail blue book value, there might be the possibility of getting this reduced or the 6.49% interest cut? - jb

[PoorGrammyinBK7]

Ah - Tks.

Then if I owe some $15,000.00 on my car which is about it's retail blue book value, there might be the possibility of getting this reduced or the 6.49% interest cut? - jb

In case law I read about, they took the wholesale value, so theoretically you could finance less than you owe now - but at a MUCH higher rate. For some people this is a solution. For others - doesn't help much.


I do not know which valuation agent they use (NADA, Kelly Blue Book, Edmunds, etc), AND I think the lender has to agree - or if they don't - it could go to a judge - but only to decide the amount I think. I could not find anyone who had actually done this with their own car, but it seemed like a good idea.

However, time really seemed to go fast and we were discharged before we got anything done on it.

I am not a lawyer and this is not legal advice - so don't take my word for it!

[DisneyGirl]

I'd do this if I were you. We did the 722 on our minivan when we filed and have no regrets. Like someone else said, better to have a vehicle you know than one you don't.

[freshcredit]

We also did the 722 and have no regrets. Keep in mind that they have to be willing to accept 722 offer. Just because 722 gave you that amount the creditor may counter with a different payoff. In our case we owed 21,000 on our van. 722 offered 12,000 for it and Ford settled at $14,000. We still got out of a upsidedown situation, but not as low as we hoped.
Although the rate is higher you might want to keep paying on it rather than just paying it off. They do report your payments and it helps build your credit.

[dogbone33]

I owe like 17k on my Jeep worth 5k. It has 92k miles on it. I use it for work to pull a trailer. Its an 03. My hubby is going to try to get a new loan through 722 as his truck lost its transmition. I didn't know if it would be smart for me to get a newer suv through 722 or keep mine and in the summer get an newer car on our own?

[jeb]

Tks PG - jb

[jeb]

JB and PG, just how does this 722 work?

I owe $15000.00 on my car - it is worth $11000.00. It is a 2005 Kia Amanti - unquestionably the best car I have ever driven.

I had planned on letting it go and finding a used car due to the high payments but if I could cut the payments I might try and keep it.

I talked to the Financial Officer at a dealer Fri and he said it would be very difficult to finance a car after the BK so I may end up with the same payments with much less car due to much higher interest rates.

Take care all - jb

[deadmonetree]

so have you gotten a 722 on a car under 2.5 years old??? anyone on a car under a year old??

[freshstartfl]

Perhaps this only applies to my state, but I was under the impression that in order to attempt a 722 Redemption, the initial purchase of the car must have been at least 910 days before you file.

[okiemom2008]

Perhaps this only applies to my state, but I was under the impression that in order to attempt a 722 Redemption, the initial purchase of the car must have been at least 910 days before you file.

I remember something about that but we bought ours only about 500 days ago and he said it was fine. So maybe it differs...not sure.

[jeb]

Keep in mind that they have to be willing to accept 722 offer. - freshcredit

Fresh, my Attorney told me yesterday that the lender had to accept the 722 offer. - jb

[freshcredit]

That is not true. We did this in July. 722 gets all of the info about the auto and comes up with their offer. In our case it was $13000, but Ford Motor Credit countered with $14,500. It was still better than the $21000 that we owed on the thing, but not as good as we hoped.