If you’re struggling to make your debt payments, you may be wondering what to do about your car or other personal property that is encumbered by credit. Luckily, there is a little-known bankruptcy process that can often help you keep your upside down vehicle or other asset.

This is called “redemption.” It allows you to pay the creditor a lump sum amount for the value of your property instead of the full loan balance. This can save you thousands of dollars in interest and fees.

Cars

If your car is worth a lot less than the balance of the loan, a redemption can be an option. In this case, you pay the lender either the current market value of the car or the outstanding balance, whichever is lower. If you decide to redeem your car during bankruptcy, you must file a Motion to Redeem with the court and get the approval of the judge.

A redemption is a great solution for people with a vehicle that they want to keep but do not have the cash to buy it outright. It allows you to keep the vehicle while still paying the monthly installments on your loan. The only downside is that the lender will charge you a high interest rate. But if you are able to pay off the car more quickly, that will give you a lower principle balance and make your payments much more affordable.

Before changes in federal bankruptcy law in 2005, many Chapter 7 filers did what was known as a “ride through.” They kept paying the car loan and figured that it would be discharged by their bankruptcy discharge. This was a risky strategy, but one that worked for some people.

But after the changes to bankruptcy law, those filing for bankruptcy have more options than ever before. Those who want to keep their cars must choose one of three ways to do it: redeem, reaffirm or surrender the car. Each of these choices has its pros and cons, so it is important to talk with your attorney about which option might be best for you.

Furniture

If you bought furniture on credit and owe less than the fair market value of the items, you can redeem it during bankruptcy. This is a common practice among debtors, particularly for cars, but it can be done with household goods as well.

If you owe more than the fair market value of your furnishings, you can either sell the furniture to cover the balance or pay off the loan in full during bankruptcy. This can be a great way to protect your belongings and save money at the same time.

Bankruptcy allows you to liquidate most unsecured debt, including debts related to consumer loans and credit card debts. You can also wipe out old utility bills, medical expenses, and old deficiency balances from auto repossession.

But if you own furniture that was purchased on credit a year or more before you filed for bankruptcy, creditors may want it back and demand repayment. Often, they will require that you sign a reaffirmation agreement in which you commit to making payments despite your bankruptcy.

In addition to threatening you with repossession, some creditors may even try to collect from your home or other real estate. They may claim that the property is collateral against the debt.

The trustee in the Art Van Furniture bankruptcy case has recently begun pursuing a lawsuit against the family of company founder Art Van Elslander for millions of dollars in settlements from sale-leaseback transactions that financed 70% of Art Van Furniture’s $621 million deal with private-equity firm Thomas H. Lee Partners in March 2017.

Those transaction saddled Art Van Furniture with new rent expenses, as well as a debt load that did not support the company’s future, the court documents allege. It essentially doomed the furniture company, which was founded by Art Van Elslander in 1957 and had an annual profit of $17 million at the time of its buyout.

Those lawsuits typically focus on whether the underlying deals left the companies with too little capital to stay afloat, said Conway. He noted that other recent fraudulent conveyance cases have involved fashion retailers such as J. Crew and Neiman Marcus, both of which filed for bankruptcy in the wake of private-equity deals that turned out badly.

Jewelry

When a person files for bankruptcy, the bankruptcy court may allow him or her to redeem his or her property. This includes jewelry and other goods. However, it is important to know that redemptions are only granted under certain circumstances.

In order to redeem your property, you will need to file a Motion with the court. The trustee must then approve the redemption. Once the redemption is approved, you can pay off your debts and remove the lien. This process can take a long time, but it is worth the effort because it can help you eliminate your bankruptcy debt and get a fresh start.

The first step is to decide whether your items qualify for bankruptcy exemptions. Most states offer exemptions for personal property, but the amount of these exemptions will vary from state to state. Some states may even have a “wild card” exemption that allows you to claim exemptions for any type of property, including jewelry.

Another consideration is how much your personal property is worth. You can usually get a better idea of how valuable your jewelry is by valuing it on the Internet or with a professional appraisal. In general, a high valuation can be more likely to result in an exemption.

If your jewelry is worth more than you owe on your loan, the trustee can redeem it for you. This can be done for many reasons, including to get a lower monthly payment.

It can also be used to pay off other debts. For example, you can redeem your jewelry if you have other debts that would be more difficult to pay off with a regular payment. This is especially true for debts that have high interest rates.

Redemptions are an excellent way to pay off debts, but they should only be done with the assistance of an experienced attorney. Having a lawyer assist you in the redemption process can ensure that you are not making any mistakes and that you will get an accurate valuation of your personal property.

The jewelry industry has changed dramatically in recent years. It is no longer dominated by traditional jewelers. Instead, independent jewellery designers have emerged. Some of them are highly specialized and trained at art colleges. These designers are often very creative and are interested in radical ideas and new materials. This has led to a variety of trends in jewellery design. One of these is called Art Nouveau. It is characterized by sinuous curves and naturalistic motifs. It started in the final years of Victoria’s reign and continued until shortly before World War I.