Motion to redeem
Definition and meaning
The Motion to Redeem is a formal request filed by a debtor in bankruptcy proceedings to recover property that has been repossessed or encumbered by a lien. This legal motion allows the debtor to reclaim their property by paying the lienholder the fair market value of the property, rather than the total amount owed on the loan. This process is particularly relevant in cases where the value of the property is less than the total debt, enabling the debtor to salvage their assets.
How to complete a form
To successfully complete the Motion to Redeem, follow these steps:
- Begin by entering your full name and the case number at the top of the form.
- Describe the property you wish to redeem, providing details such as its location and a brief description.
- Estimate the property's fair market value and clearly state this figure on the form.
- Indicate whether the property has been abandoned or if it is exempt.
- Sign and date the form, ensuring all provided information is accurate.
Who should use this form
This form is primarily intended for individuals undergoing bankruptcy proceedings who wish to reclaim personal property that has been repossessed or liens placed against. It is applicable for various situations, such as:
- Debtors seeking to redeem vehicles, real estate, or other valuable assets.
- Individuals looking to regain property that may have been deemed abandoned.
- People wishing to erase financial burdens associated with specific properties through negotiation with lienholders.
Key components of the form
The Motion to Redeem includes several essential components to ensure its validity:
- Debtor Information: Full name and contact information of the debtor.
- Case Information: Bankruptcy case number and chapter filed.
- Property Description: Detailed account of the property being redeemed.
- Estimated Value: Fair market value of the property as assessed by the debtor.
- Statement of Exemption: Indication of whether the property has been abandoned or is legally exempt.
Common mistakes to avoid when using this form
When completing the Motion to Redeem, it is crucial to avoid the following errors:
- Failing to provide accurate property descriptions, which can lead to delays in the process.
- Not estimating the property’s fair market value correctly, which could result in financial loss.
- Missing or incorrect signatures, which may render the motion invalid.
- Neglecting to file the motion within the appropriate time frame set by the court.
Form popularity
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.