At Walker & Walker, we understand how overwhelming a car loan can be—especially when you owe more than your vehicle is worth. Refinancing isn’t an option when you’re upside down on a loan, and continuing to make high payments on an aging vehicle can feel like throwing good money after bad. Fortunately, Chapter 7 bankruptcy offers a solution that could save you thousands and free you from the burden of an underwater car loan. It’s called Redemption, and it’s a powerful tool to help you regain control of your finances.
What Is Redemption?
Redemption allows you to pay off your car loan for its current market value, not what you originally owed. Here’s how it works:
- If your car is worth less than what you owe, your loan is considered “underwater.”
- In a typical situation, refinancing isn’t possible because lenders won’t offer a loan when the vehicle’s value is lower than the loan balance.
- But with Chapter 7 bankruptcy, we can file a motion to redeem your vehicle for its bluebook value and help you secure a new loan for that lower amount.
This process often results in instant savings—lowering your monthly payment, reducing the total amount you owe, and giving you a clear path to financial relief.
Real-Life Success Story
Just last week, we helped a client reduce her car loan from $19,103 to $7,055. Her monthly payment dropped by $200, and instead of being stuck with a hefty loan for four more years, she now only has 18 months left to pay.
Thanks to Redemption, she’s no longer trapped in a bad deal with an aging vehicle. She has more money in her pocket each month and can now use that cash for other essentials or even save for the future.
How Do You Find a New Loan During Bankruptcy?
One of the biggest concerns we hear is, “Where can I find a lender willing to work with me while I’m in bankruptcy?”
Don’t worry—we’ve got that covered.
At Walker & Walker, we’ve built relationships with lenders who understand the value of Redemption and are eager to help people in Chapter 7. They know the savings are real and are motivated to offer loans that align with your new, lower balance.
What If You Can’t Find a Loan?
Even if securing a new loan isn’t possible, you still have options:
- Keep paying the old loan and retain your car.
- Return the car and walk away from the loan without any financial penalty. Since Chapter 7 discharges your debt, you won’t owe a dime, and it won’t show up as a repossession on your credit report.
In fact, many of our clients see their credit scores increase by 50 points or more after filing Chapter 7. Once your bankruptcy is complete, you’ll have more opportunities to secure a new vehicle with better terms.
Why Choose Walker & Walker?
At Walker & Walker, we’ve been helping Minnesotans navigate bankruptcy for years. Our team knows the ins and outs of Chapter 7, and we’re here to guide you every step of the way—from filing your case to securing a new loan and lowering your car payment.
We believe in providing clear, respectful, and reassuring guidance to help you make the best decisions for your financial future.
Take the First Step Toward Financial Freedom
If you’re struggling with high car payments and feel stuck in an underwater loan, Redemption under Chapter 7 bankruptcy might be the solution you’ve been looking for.
📞 Call us today at 612-824-4357 for a free attorney consultation. Let’s see if we can help you lower your car loan and put you back in control of your finances.
At Walker & Walker, we’re here to help you find relief, regain your financial freedom, and move forward with confidence.
