CORPORATE DESCRIPTION
Fresh Start Loan Corporation, a Delaware Corporation, dba Redemption Financial Services™ dba Replacement Financial Services™ is a duly licensed Consumer Loan Company that began its operations in 1999. The company is now licensedand or authorized to conduct business in 24 states*, with licenses pending in 3 states** as of May, 2008.
Paul D. Kirschner, President, General Counsel, Fresh Start Loan Corporation (See "Company History" below). All employees of Fresh Start Loan Corporation, its loan officers, loan processors, customer service and intake employees are located at our headquarters in Gig Harbor, Washington.
Company History
Prior to founding Fresh Start Loan Corporation, Mr. Kirschner practiced law1 in his own private practice firm for over 22 years, representing over 12,000 consumers filing personal bankruptcy.
During his career in representing the consumer bankruptcy filer in Chapter 7 cases, and in particular those filers who had an auto loan, Mr. Kirschner observed that a bankruptcy law for the benefit of the filer was rarely being used. This law, 11 USC § 722 "Redemption" provides that individuals can "redeem" personal property that is secured by a loan, such as an auto loan, based upon payment to the existing lender according to a valuation of collateral, even if the collateral was valued much lower than the debt owing to the lender!
For example, under this law, if a Chapter 7 bankruptcy filer owed $14,000 on their car, but the car was only worth $7,750, the filer could force the existing lender to release its lien on the car, by court order, and the filer would own their car, free and clear, in exchange for payment by the filers, in CASH, of the value of the car, $7,750, not the $14,000 owed. In this example, a savings of $6,250 to the filer. Understandably, few of Mr. Kirschner's clients had any savings or other financial sources in order to redeem with "cash," and thus were not able to use this valuable law for their benefit in bankruptcy.
It became clear to Mr. Kirschner that a need existed for a lending entity willing to offer redemption financing to qualified Chapter 7 filers, so that by implementation of the existing law, the filer could redeem their existing loan and obtain a new loan, with lower monthly payments and lower loan balance. It also became clear that another option available for Chapter 7 filers would be to consider replacing their existing car and car loan with another car and car loan, enabling the consumer to obtain a car with lower mileage, better gas economy, better condition and/or a more affordable vehicle.
In 1999, Mr. Kirschner founded Fresh Start Loan Corporation dba Redemption Financial Services™ dba Replacement Financial Services™. Since then, many consumer bankruptcy attorneys throughout the country have been able to implement the law of redemption for their clients, having obtained Bankruptcy Court Ordered approval, and their qualified clients have new Redemption loans or new Replacement loans, enjoying substantial savings out of pocket and/or a better vehicle than before.
