If you wish to use redemption in a Chapter 7 bankruptcy you will have to pay the replacement value for your car or personal property if you wish to redeem it.  This may be the wholesale value.   A Chapter 7 Bankruptcy filing may allow you to get your car from your lender for pennies on the dollar under the bankruptcy law. But redemptions can only be done in a Chapter 7.  When you file a Chapter 7 Bankruptcy in Kentucky think for a minute about whether you want to 

1.   Surrender your car, and owe nothing

2. Reaffirm your car with the bank through the court and continue to owe the bank if you owe less than what the auto is worth

3.  Or redeem your car and buy it from the bank by filing a motion with the court under Chapter 7 for it's wholesale value if you owe more than what it is worth 

4.   Or perhaps even buy a different car. 

Personal property like Cars, Boats and Mobile Homes can be kept for replacement value from the bank and even from the Bankruptcy Court Trustee!   Under Chapter 7 laws, this may be  the wholesale value. 

Under Chapter 7 Bankruptcy law you have 4 choices with your car. 

First, you can always surrender the car to the bank and owe nothing.  This may be a good choice if the car is a lemon. 

Second under Chapter 7 Bankruptcy law, many people want to keep their auto and just pay off the lender with the same old payments.  A workout or reaffirmation in Chapter 7 bankruptcy court is a good choice if the lender will agree and:

1) If you owe less than what the wholesale price of the car is and 

2) If the interest rate is good and 

3) If you are on good terms with the lender.  If you are on poor terms with the lender they may reaffirm with you with the intention of taking the car later and suing you for the deficiency after  bankruptcy is over.  A workout is normally better and you normally don't want to sign a reaffirmation agreement.

Fourth Chapter 7 Bankruptcy law allows you to buy a car from your lender in a lump payment at its replacement ( as low as it's wholesale value). If you paid too much for your car you should file a redemption or surrender it.   722 redemption will often finance it if you don't have the cash to do the redemption.  722 Redemption saves the average approved person 8,000 dollars. (1-888-721-2800)   They may pay off your current bank for the wholesale value of your car or put you in a different car.  See how to file a redemption in our manual under redemptions.  Lenders and Bankruptcy Trustees don't have a choice.  Banks must accept the court ordered  Chapter 7 bankruptcy redemption amount.  

The Bankruptcy Manual fully discusses redemptions and reaffirmations.   Download your free copy.

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