There are lots of reasons that people don’t file for bankruptcy. Many times, they don’t even really understand how bankruptcy works to free them of their debts and give them a fresh start. One of the biggest reasons I found that people don’t file for bankruptcy is because they are afraid to lose their car. If they owe money on it, and are unable to pay, they are afraid to lose that car either before or during a bankruptcy proceeding. Very often a car is a lifeline, it helps you get to work, look for job, take the kids to school, or get an elderly parent to their medical appointments. It gets you to the grocery store, and all around to the places that your life takes you. However, there is a way to keep your car.
How do I know this?
I am a bankruptcy lawyer, the firm that I found it specializes in helping people deal with their debts and bankruptcy is one of our specialty practices. Where different from bankruptcy preparers, in that we are allowed to offer legal advice. By the state law of Florida only attorneys admitted to the bar can offer legal advice. So when I tell you that you can keep your car by using what’s called a 722 redemption, you can take that to the bank.
How Does a 722 Redemption Work?
The 722 redemption is literally written into the bankruptcy code. It allows you to pay a secured debt or a lien in full in order to redeem the property. There are a number of companies that do 722 loans. I can hear you saying, “But Chad, who is going to give me a loan if I’m going to file for bankruptcy?” It does sound a little counterintuitive, however these loans do exist and it is possible to get them from a reputable company that’s not going to take you for a ride. Yes, they may be slightly higher in interest, but you will be paying off the lump sum of the loan – what you currently owe – and saving a tremendous amount in interest charges. The interest charges may be a little higher than those under which you are repaying the car loan, but your knocking the debt down to a manageable level, saving money, and you still get to keep your car.
If you’re currently struggling through filing your own bankruptcy, or are considering filing for bankruptcy, the best advice I can give you is to contact us and set up an appointment for free consultation. Our offices in West Palm Beach and Fort Lauderdale are open seven days a week to help you with scheduling. If you been living under crushing load of debt, it’s time to get in touch with us and get a grip on your finances. Whether you are filing a Chapter 7 or a Chapter 13 bankruptcy, we have years of experience in getting people to a good settlement, and giving them the chance to turn your life around.