{"id":1225,"date":"2019-12-12T12:13:45","date_gmt":"2019-12-12T18:13:45","guid":{"rendered":"http:\/\/www.mankatobankruptcy.com\/blog\/?p=1225"},"modified":"2019-12-03T12:21:00","modified_gmt":"2019-12-03T18:21:00","slug":"redeeming-secured-property","status":"publish","type":"post","link":"https:\/\/www.mankatobankruptcy.com\/blog\/redeeming-secured-property\/","title":{"rendered":"Redeeming Secured Property in Chapter 7 Bankruptcy"},"content":{"rendered":"\n

If you\u2019re\nfacing a large amount of debt and unable to make payments each month on those\ndebts without severely compromising your quality of life, you may want to\nconsider filing for bankruptcy. Chapter 7 bankruptcy is the most commonly filed\ncase for individual consumers. In fact, there were over 400,000 non-business Chapter\n7 bankruptcy cases filed in 2017. If you are considering filing for Chapter 7\nbankruptcy in Redwood Falls, MN, Behm Law Group, Ltd. can help you put together\na strong case that will provide long-term debt relief. <\/p>\n\n\n\n

Chapter 7 bankruptcy<\/a> works as a liquidation process. You will have to provide all your financial information including debts, income, and properties to the bankruptcy trustee assigned to oversee your case. The trustee will then liquidate (sell) any non-exempt assets (properties) you have if you cannot claim an exemption on them. You can claim exemption amounts on properties like your home or car and other assets to protect them from liquidation. Once your non-exempt assets have been liquidated, the debts tied to them are discharged along with your unsecured debts such as credit card and medical debt. <\/p>\n\n\n\n

There is\none other way your secured properties can be treated in Chapter 7 other than\nwith liquidation or exemption. They can be redeemed. <\/p>\n\n\n\n

Property\nredemption essentially means you are buying the property back from your\ncreditor for the value it\u2019s currently worth. This is a beneficial option for\nfilers if they owe a debt on the property larger than its value. By redeeming\nthe property, you may pay less than actually paying back the debt, and you will\nbe able to keep the asset. <\/p>\n\n\n\n

The\nvalue of the property is either agreed upon by you and your creditor, or, if\nyou disagree, the court holds a valuation hearing. When the value is\ndetermined, you have to buy it back by paying one lump sum. <\/p>\n\n\n\n

To\nredeem a property, there are several requirements that must be met. These\ninclude:<\/p>\n\n\n\n