Motion to redeem
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FAQ
Subsection (b) specifies that the discharge granted under this section discharges the debtor from all debts that arose before the date of the order for relief. It is irrelevant whether or not a proof of claim was filed with respect to the debt, and whether or not the claim based on the debt was allowed.
The automatic stay requires creditors to cease actions against the debtor and the debtor's property as described in 11 U.S.C. § 362(a). The automatic stay remains in effect until the case is closed or dismissed or, in an individual case, until the granting or denial of the debtor's discharge, whichever happens first.
Chapter 7 contains a provision called redemption that can be of great advantage to debtors in this situation. Using redemption, the debtor buys back an item of secured personal property by paying its current value, which is often much less than the amount owed on the loan.
It authorizes an individual debtor to redeem tangible personal property intended primarily for personal, family, or household use, from a lien securing a dischargeable consumer debt. It applies only if the debtor's interest in the property is exempt or has been abandoned.
Section 722 of the bankruptcy code allows you to file a motion or bankruptcy case and redeem your auto from the lender ing to its market value. Redemption is the ability to save or pay the lender the retail value and have the lien released. You can pay cash or finance, paying off the old lender.