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hi West Scott from Canaan Scott today were going to talk about what our Redemption agreements in a chapter 7 bankruptcy weve talked about a reaffirmation agreement which gives your liability back to the creditor on the loan the loan terms remain the same in most instances but what is a Redemption agreement in Chapter 7 bankruptcy well a Redemption agreement is an agreement where you pay the creditor in full for the asset now we say that well to redeem means to pay in full typically but the balance that you agree to pay the creditor is subject to negotiation Ill give you an example if youve got a car that you owe $12,000 on but its only worth $3,000 there are chances that the lender the bank the creditor will release their lien if you agree to pay them $3,000 why would they do that well look having $3,000 now is better than getting a car back as a pile of junk in six months and youve only made payments of 350 dollars to them so theyre making a gamble wed rather have the money no