C is for Cramdown

Ch13 bk | 27. Nov, 2011 by | 22 Comments

Let’s say you bough a new car 3 years ago. The value of the car generally drops faster than you pay off the loan, especially if you had to pay off an old loan on your trade-in. So you have a $20,000 loan on a car only worth $10,000. Bankruptcy has a solution for you.

In bankruptcy, for secured loans, you can propose to the Court that you only pay the fair market value of the car rather than the remaining loan value in a Chapter 13. So in the scenario above, you would pay $10,000 to the car lender over the duration of the Chapter 13 plan (3 to 5 years) at the Court-set interest rate (currently 4.75%). So not only do you reduce your principal, you can also adjust your interest rate and the duration of the loan.

Using the the cramdown, you can significantly reduce your monthly car payment. The court-imposed interest rate is very beneficial to those with car loans from subprime car lenders like Santander, Westlake or OneMain.

For other C bankruptcy terms: Creditor – New York Bankruptcy Lawyer, Jay S. Fleischman
Philadelphia Bankruptcy Lawyer, Kimberly Coleman
Chapter 7 – Marin County Bankruptcy Attorney, Catherine Eranthe
Counseling – Northern California Bankruptcy Lawyer, Cathy Moran
credit counseling – Los Angeles Bankruptcy Lawyer, Mark J. Markus
Credit Counseling – Law Offices of Daniel J. Winter
Conversion – Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell
Creditors Meeting – Philadelphia Bankruptcy Lawyer, Raymond Kempinski
Cramdown – Colorado Springs Bankruptcy Lawyer Bob Doig
Cosigner – Cleveland Area Bankruptcy Lawyer, Bill Balena
Competence and Compassion – Philadelphia Suburban Bankruptcy Lawyer, Chris Carr
Chapter of Relief – Taylor Michigan Bankruptcy Lawyer, Christopher McAvoy
Creditor – St. Clair Shores MI Bankruptcy Attorney
Cars – San Francisco Bankruptcy Attorney, Jeena Cho
Cramdown – Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein
Credit Card Tips – Wisconsin Bankruptcy Lawyer, Bret Nason
Congress – Los Angeles Bankruptcy Lawyer, Christine A. Wilton
Creditors – Livonia Michigan Bankruptcy Attorney, Peter Behrmann
Costs-Miami bankruptcy Attorney, Dorota Trzeciecka
Claims-St. Louis, Missouri Bankruptcy Attorney, Nancy Martin
Credit Card Creep-Pittsburgh Bankruptcy Attorney,Shawn Wright
Credit Counseling-Birmingham Bankruptcy Attorney, Elizabeth Johnson
Check Your Bills, Bank Account Statements and Paystubs-Columbus, Ohio Bankruptcy Attorney, Athena Inembolidis
Credit counseling-Chicago Bankruptcy Attorney, Kyle A. Lindsey
Cars-San Francisco Bankruptcy Attorney, Jeena Cho
Cancellation of Debt Income-Vermont-New Hampshire Bankruptcy Lawyer, Michelle Kainen
Cheap Bankruptcy-Houston Bankruptcy Attorneys, Busby & Associates
Celebrity Bankruptcy Filings-Wisconsin Bankruptcy Lawyer, Ryan Blay

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