SAN DIEGO and CINCINNATI — LEAP Financial and 722 Redemption Funding announced a partnership to offer redemption and replacement financing for customers filing for Chapter 7 bankruptcy. The U.S. Bankruptcy Code allows consumers to “redeem” their vehicle by paying fair market value for the vehicle in one lump sum.
Both 722 Redemption and LEAP Financial work with debtors and debtor attorneys to offer auto financing options for customers filing for bankruptcy.
“In a Chapter 7 bankruptcy, consumers have three options regarding their auto debt: reaffirm the debt, surrender the vehicle, or redeem the vehicle,” said Tim Condon, CEO of LEAP Financial. “If the debtor can afford to make the payment on their auto debt, it makes sense to consider a reaffirmation, paying the current lender the agreed-to terms of the auto debt. Depending on the value of the vehicle, however, a better alternative could be to surrender or redeem the vehicle. When filing bankruptcy, debtors should work with their attorneys to understand their options and ensure they pursue the right decision for their financial situation and vehicle.”
And with 722 Redemption’s access to consumers and bankruptcy attorneys, combined with LEAP’s ability to finance credit-challenged customers, debtors will be allowed to pursue all of their auto options, Condon added.
“Our partnership with LEAP gives us the opportunity to broaden our geographic reach and offer financing to consumers where we are not operating today,” said Brad Zappin, COO, 722 Redemption Funding. “In addition, it allows us to reach potential consumers who would not previously have been approved for financing. This is great news for consumers and their attorneys who are considering alternatives for handling their auto debt during their bankruptcy proceedings."