Question About Vehicle Redemption
I'm getting ready to file for Chapter 7 in Virginia and I'm thinking about doing a redemption on my vehicle. It's a Mitsubishi Galant with almost 130,000 miles on it. The Blue Book retail value is $4,575 (although I was offered a mere $900 for it by a dealer about six months ago and I've seen the value listed at anywhere from $1200 and up elsewhere). I owe over $9,000 on it. My understanding is that if I file a motion for redemption, I might be able to pay the "market value" of my vehicle to the loan company and in effect pay it off that way. My questions are: 1) Who determines what the market value of it is for the redemption? Do they do an inspection of the vehicle or just use a reference of some sort? Is it usually higher or lower than the Blue Book value or about the same? 2) Is there any reason the loan company would not offer me this option?
The Court ultimately determines the value of the car. Often, however, either a deal can be worked out, or the auto lender simply fails to respond. Speak with your attorney for more details.
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