Q: File motion to redeem auto. I originally filled out form 108 and chose to reaffirm my auto loan. I now want to amend

A: If you are underwater on your car loan, as you indicate, my recommendation is that you not reaffirm your loan. Just keep making payments. If you must reaffirm it, you can negotiate with the lender on the amount due and the interest rate, but there is nothing that requires the lender to make you a better deal, and the Court has no role in the negotiations. You might want to consider surrendering the vehicle and getting a new one.

A: When filing a motion to redeem an auto in bankruptcy, using appraisals from sources like Kelly Blue Book, NADA, and CarMax can be a practical approach to establish the vehicle's current market value. These appraisals are commonly recognized and often accepted in bankruptcy proceedings, but it's also wise to be prepared for the lender to potentially challenge them.

Including the cost of necessary repairs, like a new catalytic converter, in your valuation can provide a more accurate picture of the vehicle's worth. It's beneficial to show the impact of these repairs on the vehicle's value, as this can influence the redemption amount.

Before filing a motion with the court, it can be advantageous to approach your lender to negotiate. This step might lead to an agreement on the vehicle's value and the redemption amount without needing court intervention. Open negotiation can sometimes result in a more favorable outcome and can save time and resources.

If negotiations are unsuccessful or not feasible, you can proceed with filing the motion. Ensure that your lender is properly notified of the motion and has access to the appraisals and repair estimates. This will give them an opportunity to respond or contest the value you've presented.

It's important to remember that every bankruptcy case is unique, and outcomes can vary. Keeping open lines of communication and being prepared with thorough documentation are key steps in this process. If you're uncertain about any part of this process, consulting with a legal professional experienced in bankruptcy law can provide valuable guidance tailored to your specific situation.