Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

Redeem Your Property in Bankruptcy

In a Chapter 7 liquidation case, an individual debtor may redeem certain "tangible personal property intended primarily for personal, family, or household use" that is encumbered by a lien. To qualify, the property generally either (A) must be exempt under section 522 of the Bankruptcy Code, or (B) must have been abandoned by the trustee under section 554 of the Bankruptcy Code.

If it is the intent to redeem your debt that means you can pay a creditor what your personal property is worth now instead of what you owe on it. For example, if your car is worth $5,000 and you owe $7,000, you would only pay the creditor $5,000 in exchange for keeping the car and can save you several thousand dollars if you owe a lot more than the car is worth.

This is a very appealing option to many however the payment must be a lump sum. If this is an option that works for you, it could save you a lot of headaches and free up enough of your income to get you back on track. There are companies out there that do redemption loans so you actually don't have to come out of pocket with the lump sum payment; of course, incurring more debt is something that should be done with a good deal of care and thought.

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
100 Crescent Court
Suite 700
Dallas, Texas 75201

Phone: 214-733-1775
Map & Directions