pro se 722 redemption

[watachii2]

Has anyone ever successfully completed a 722 redemption while in a chapter 7 pro se? I filed today and wanted to know if it is possible. I checked out the website and it looks like I can fill out all the information myself, but I was just wondering if anyone has any tips. Thanks!

[StaciMM]

722redemption.org only does replacement vehicle loans if you do not have an attorney.

[watachii2]

How did you find out that information? What about other companies? I owe $15000 for a car worth about $9000-10000 that I intend to keep. Thanks.

[StaciMM]

I found out when I talked to them about a redemption loan on our car. (We owe $14,000, its worth $5,000.) They replied back to the info request I'd sent that they couldn't proceed without an attorney name/phone #.

[accentone]

so does the attorney charge more to do this? I have an SUV worth about $14,000. and I owe $28,000. Should this kind of thing be done before or after a 341? Or does it matter? Is the trustee in on this, too? Just curious if this is something I should look into.

[StaciMM]

Attorneys charge extra for working out redemption agreements, and the redemption loan would include that fee. The loan is at a high APR (24%) but it cuts out the negative equity.

Redemption is part of ch. 7 BK, and has to be complete prior to discharge.

[accentone]

thanks, staci. maybe i should look into it.

[StaciMM]

If you're upside down by $14k, certainly. If you have $28k owed still, I'm guessing you have ALOT of payments remaining. If you financed $15k (assumed some for fees, etc. though just to be fair) for 4 1/2 years @ 24%, you'd pay a little over $24k in the end. But that's better than paying on $28k + interest. (And if your car payments go down, but you can afford to send the same amount that you're sending now anyhow, you'd save alot of interest. Paying an extra $75 or so a month would save you 1 year & $2000 in interest.)

[watachii2]

Stacy--what other options are there for pro se filers? Did you also file pro se?

[StaciMM]

Redeem, surrender, or retain. (Retain by reaffirming, or just by keeping the payments current.)

I *think* we are going to give up both of our vehicles (and payments!) as part of our BK process. If we save the 3 payments that we would normally make up until mid Dec., we'll have $2600 or so and I think we can do decently with that much for a used car. Cutting our expenses will allow DH to quit his 2nd job.

I can tell you this-never again will we have 2 vehicle payments at once! There is good reason to expect that within a year's time, DH will be making more $$ on his full time job, and hopefully I'll be making more on mine soon. I think if we can go w/ no car payment for a year-we'll be much better off.

Edited to add:

Yes, I filed pro se. I tried to bargain w/ our vehicle lenders-both said they don't do that. I think in the end, before we put the $$ into a used car, we'll call Mitsubishi and see if they want $2500 for it. If not, we'll arrange to leave it at a dealership. (I had already checked, they will need about a week's notice to work it out w/ the dealership.)

[watachii2]

Were you behind on your car payments?

[StaciMM]

No-they were current when I filed... I actually didn't make the ones that were due last week-put the $$ into a savings account. I figure if we decided (not likely) to keep one of the vehicles we have, I can make all the payments before discharge and be ok.

[accentone]

what if i get through my bk and later decide I want to give up the car? Although, I'm not sure what I would do then for transportation during the day. You're right. Two car payments is awful.

[StaciMM]

If you don't reaffirm, then the BK discharges your debt. (But not the lender's security interest.) So, if at some point you want to give it up-you can. But you lose that if you reaffirm.