Process, Impact, and Caution
Good morning, everybody. I’m Oklahoma City bankruptcy attorney, Edward Kelley. Today I’m wrapping up our topic on redemption. Not church redemption, but how to redeem usually a vehicle in a bankruptcy.
Quick recap. What happens is you’re paying the creditor the value of the collateral instead of the collateral itself. Instead of surrendering it or reaffirming it, you’re given the value. So if you owe $10,000 on a $2,000 car, you can file a motion with the court. This is how it works in bankruptcy video to hopefully negotiate with the creditor and get it agreed. Or you can fight it out about what it’s worth and pay him that $2,000. Then the $8,000 goes away and you get to keep the vehicle. Pretty extraordinary.
The Impact of Redemption After Bankruptcy
Well, how does that affect you after bankruptcy? Well, a lot of people, most people don’t have the money to do that. Usually that’s going to have to be some kind of gift or loan from a family member. But absent that, there are lots of companies that will give you a redemption loan because you have filed bankruptcy and you can now borrow. Of course, you have to be careful. Those can be high interest. And although you might save from your original loan, once again, you might get into credit problems. So you want to be careful.
Contact Me for a Free Consultation
So that’s how redemption works. What it is, how it works in the bankruptcy, how it affects you after. You just have to be careful. Don’t get in the same spot again.
As always, you can reach me, a bankruptcy redemption lawyer in Oklahoma, at oklahomacitybankruptcyattorney.pro for a free consultation.