722 redemption

What is the name of your state? VA
If you're filing bankruptcy without a lawyer, can you still use the 722 redemption. And how difficult is it to do this? If anyone can help it would be much appreciated!

[AttorneyOney]

Be sure to indicate your intention to redeem on your statement of intention. This statement has to be filed within 30 days of the petition and before the 341 meeting. You then have 45 days to carry out your intention. This timing can create a potential problem, in that the asset isn't really yours until the deadline passes for objections to your exemptions under rule 4003(b) [30 days after the 341 meeting) or the trustee formally abandons the asset, as the case may be.

If the deadline is looming, you can always file a motion to extend the time for the redemption. Practically speaking, there's probably no need unless the creditor seeks relief from the automatic stay in order to repo or foreclose. If you keep them in the loop, they will probably not do that.

You negotiate directly with the creditor to arrive at the redemption price. Here's where having an attorney might be helpful, but you can probably drive a hard bargain yourself. Don't lose sight of the fact that the creditor would have to pay something to repo or foreclose and then sell your property. If you offer to pay them something in the neighborhood of what they'd realize after that process, they should agree.

Be sure to get appropriate evidence that the creditor's lien has been released. This would be a notation on a motor vehicle title, a recorded statement concerning a real estate lien, or a UCC filing terminating some previous financing statement. Ask the creditor to give you whatever it is, and YOU make sure it gets filed in the right place with the right fee. (In general, never leave it up to the other side to clear your title.)

Thanks for the information!

I have decided not to redeem, I have 1 more year on the car and then it will be mine. Redeeming only put me at a higher interest rate and the payments didn't drop but $30. I did file the intention but since I'm just gonna continue making the payments do I need to retract that or not? And there shouldn't be any problems or talk of repo if I continue to make my payments right? Also, during the automatic stay the car can't be repo'd even if I'm 1 mth behind right?

Thanks for your help.....

[AttorneyOney]

It's really a private matter between you and the lender. If you have an informal arrangement with them that's different from your statement of intention, no one else will really care so long as you're paying with exempt or post-petition assets. Be aware that they technically could repo the car because you are in technical default. But they probably won't unless you give them a reason.

The creditor can't repo without violating the stay, but they can request relief from the stay if you don't carry out your intention. Again, if you keep up the payments, they shouldn't have any reason to go to the trouble. If you're worried about that, just execute a formal reaffirmation agreement.