I'm a newb here and have been reading over the this forum and some others for a few months. My BK was recently discharged and all of this info has helped point me in the right direction into repairing my credit. Thanks. What I have not been able to find is information on how an auto redemption should show up on a credit report after BK. I had a loan with Sky Bank that was redeemed. The total amount owed before redemption was $14,000. I redeemed for $7,500 and received a loan with another company for that amount. The CR shows the Sky Bank account as a charge off with a current balance of $6,500. That is the remaining balance after the redemption money was received. Is this correct? Thanks for any help
I don't know if it's okay to be listed as a charge-off, but there should definitely not be a balance. It should be zero. Did you use 722redemption.com for your redemption? If not, who did you use?
I didn't think I should have a balance with them. Yes, I used 722 Redemption Funding and they got me a loan through US Bank. Everything went smoothly. The interest rate was higher but it lowered my payments, took a year and a half off of my loan and saved me $6,500. Thanks
SM- Reporting a deficiency balance on your credit report could be construed as "continued collection" activity as it violates the bk redemption clause which IS Section 722. Of course they did it because they were pi**ed off that they received less than what they would have in a reaffirmation. So send them a very firm letter that their tradeline must be deleted or else you will have your atty file a legal action against them in the bk court. Make sure you mail CMRRR...include the RR# on your letter so the letter and green card will match as documentation. Include in the letter that if you are compelled by their inaction to file suit you will be seeking actual damages, punitive damages and all costs and attorney's fees. Give them 20 days to respond. Cc the letter to your bk attorney.. clc
Is there a time limit on the 722 redemption? We did not reaffirm our truck but are upside down on it, we owe about 16900 and market value is about 9K according KBB. We are still making payments, they are 539 a month we still have 3 years left to pay 13% interest, Loan was for 4 years. What is the process and is there anything I can do now 3 months post discharge any help would be great. I would love to get a smaller payment for the truck and have considered turning it over because of the large payment. I wouldn't even mind going another 4 if I can get a cheaper payment maybe 10% interest? Just some thoughts. Thanks
