A Chapter 13 bankruptcy may allow you to reduce the principal balance of your investment property mortgage. This is known as a mortgage “cramdown.” Read on to learn how you can use Chapter 13 bankruptcy to cram down your investment property mortgage.
Unfortunately, one of the limitations of the Chapter 13 cramdown is that it cannot be used on your primary residence. However, if you've got a mortgage that is upside-down, and you have more than one mortgage, you may be able to reduce your mortgage through a process called "lien-stripping".
If your car is worth less than what you owe on it, you may be able to use a Chapter 13 bankruptcy “cramdown” to reduce the balance and interest rate on your car loan. Read on to learn what a cramdown is and how it works in Chapter 13 bankruptcy.
A "cramdown" in a Chapter 13 bankruptcy allows you to reduce the principal balance of a debt to the value of the property it is secured by. By taking advantage of a Chapter 13 cramdown, you may be able to save your car, investment real estate, or certain other properties.
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