Reaffirm, Redeem or Surrender?

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At Sadek Bankruptcy Law Offices, we realize that every situation is different. Our debt relief lawyers will take the time to learn about your situation and your goals. Our objective is to explain your legal options and offer the best debt relief strategy for you in the most compassionate and friendly manner possible. Call 24/7 to schedule your meeting with a lawyer.


Our office understands the financial stress our clients endure. Therefore, in addition to reasonable legal fees, we offer a payment plan to all of our valued clients to make quality legal services most affordable.


In addition to our primary law office in Center City, Philadelphia, we also have law offices throughout the Greater Philadelphia, Pennsylvania Area and in New Jersey. Our branch offices have contributed to making us the #1 Bankruptcy Filer and debt relief firm in the Greater Philadelphia area. Our goal is to have a convenient location within 20 minutes of where our clients work or reside.

Reaffirm, Redeem or Surrender?

Under applicable bankruptcy laws, one has three choices with respect to an existing automobile and loan payments.  First, one may continue making the contractual payments when and as due on the automobile, which is known as “reaffirming” the debt.

Second, one may “surrender” the collateral vehicle and no longer be responsible for future monthly payments monthly .  Further, when one surrenders and automobile through Chapter 7 Bankruptcy, any monetary deficiency is deemed unsecured general nonpriority debt and is  therefore discharged through the cours of the bankruptcy proceeding.

The thrid and last option is to “Redeem” the property.  The redemption process in bankruptcy requires a motion in compliance with Section 722 of the US Bankruptcy Code.  The  Rededmption is ultimately a refinance of the vehicle or other personal property based on fair market value of the vehicle or property at the time of filing, rather than paying the full contractual amount due at the time of filing.  For example if one owes $15,000.00 on their vehicle at the time of filing that is now worth only $10,000.00, only $10,000.00 need be paid.  The fair market value of the vehicle is paid through a refinance of the vehicle.  The process is commonly known as a 722 Redemption and has saved filers thousands of dollars.   Sadek Law Offices, LLC works with lenders and services in the Chapter 7 Redemption process.

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Philadelphia, Pennsylvania region, you may contact the Philadelphia Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008  or 215-545-0008 or email Thank you.

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