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VEHICLE
REDEMPTION LOAN
You see this scenario time and again:
Your client likes his car and wants to keep it, but owes
a great deal more than it’s really worth. Maybe the
monthly payment is unaffordable under the current loan and
he’s fallen behind on his payments. Or perhaps the
car is securing several different loans. What can he do?
The Code allows your client to keep
his car by paying the creditor a lump sum amount. Importantly,
this amount is not the creditor’s stated payoff amount.
Instead, it’s what the court determines the vehicle’s
fair market value to be, which, if your client is what they
call “upside-down” or “buried” in his
car, can be much less than the creditor’s payoff amount,
with the difference being discharged in the bankruptcy.
And a redemption loan from BKAutos can
make this happen, letting your client keep his vehicle,
reduce his monthly payment, shorten the length of the loan,
and save thousands of dollars, in a transaction requiring
zero cash out of pocket.
Let's
take a look at what his actual savings might be.
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