4 Questions
What is the main factor in determining the amount to be paid for §722 redemption?
Fair market value at retail
Under what conditions can an individual debtor redeem tangible personal property from a lien securing a dischargeable consumer debt?
If the property is exempted under 522 or abandoned under 544
What does a chapter 7 debtor have to do to redeem the property under §722?
Pay the lienholder in cash the amount of the allowed secured claim
How is a §722 redemption different than a §524 reaffirmation?
Redemption involves paying the secured creditor the fair market value, while reaffirmation involves entering into a new agreement with the creditor
Test your knowledge of §722 redemption with this quiz. Learn about the policy of redemption and how it allows debtors to prevent post-bankruptcy repossession of assets such as cars and boats by paying fair market value.
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