How is the value of property that you want to redeem under 722 determined?

If you file a Chapter 7, you have the option to redeem tangible personal property that is subject to a secured claim by paying that creditor the value of that property.

The value of the redemption amount is determined by Section 506(a)(2) of the Bankruptcy Code. This section establishes that value as that price that a retail merchant would charge given the age and condition of the property at the time of the redemption.

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