San Diego, CA, and Cincinnati, OH — LEAP Financial, an auto leasing company that serves consumers who have difficulty obtaining credit, and 722 Redemption Funding, a provider of vehicle financing solutions during bankruptcy, announced a partnership to offer redemption and replacement financing for customers filing 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. Analysts estimate that more than 1.3 million consumers filed for bankruptcy during 2011.
Both 722 Redemption and LEAP Financial work closely with debtors and debtor attorneys to offer auto financing options for customers filing for bankruptcy. This partnership leverages the strengths of both companies to help a larger number of customers maintain their vehicle during their bankruptcy filing.
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 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.
722 Redemptions access to consumers and bankruptcy attorneys, combined with LEAPs ability to finance credit-challenged customers, gives more debtors the ability to pursue their auto options. said Tim Condon, CEO of LEAP Financial. We are excited to partner with 722 Redemption to serve these consumers.
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, Chief Operating Officer, 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.
About LEAP Financial
LEAP, headquartered in San Diego, CA, is a vehicle leasing company serving consumers who have difficulty obtaining credit either keep their current vehicle or get another one. The companys unique product enables customers who are unable to qualify for traditional financing to lease a vehicle. Customers are sourced through referrals from business partners and direct-to-consumer marketing. Backed by Austin Ventures and staffed with experienced auto finance professionals, LEAP is currently operating in most states. Visit www.leapautoloans.com or www.austinventures.com for more information.
About 722 Redemption Funding
722 Redemption Funding, headquartered in Cincinnati, OH, is the nations premier bankruptcy finance company with over a decade of experience. The company assists consumers who have difficulty obtaining credit, often working through their bankruptcy counsel, to find automobile financing options. Customers are sourced through direct marketing and referrals from consumer bankruptcy attorneys. Qualified applicants received financing from one of 722 Redemption Fundings lender partners. Visit www.722redemption.com for more information.