Definition - What does Redemption mean?
Redemption, in the context of bankruptcy, refers to the opportunity that a person has at the end of the process, and once all payments have been made, to buy back property that was sold in the liquidation aspect of a bankruptcy. This could include stocks and other financial instruments or any other asset that had a loan value attached to it at the time of the bankruptcy. It is common for a person to be able to buy back their items at the original cost, and without any added interest or expenses associated with it.
Justipedia explains Redemption
The term redemption, in relation to bankruptcy, can also pertain to the act of making all necessary payments related to a foreclosure. There are no set limitations regarding how long a person has in order to redeem his property, and this period is set and decided by the judge. All liabilities a person has would be discounted and the interest portion of any outstanding loan is wiped off. The bankrupt person will pay the original amount or the value of the property at the time less interest.
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