Reducing Loans and Mortgages in Chapter 13 (Cramdowns)

Chapter 13 bankruptcy has a powerful tool for reducing the balance owed on certain secured debts -- the Chapter 13 cramdown. With a cramdown, you can reduce the balance on your loan to the market value of the property securing the loan. Chapter 13 debtors most often use this tool for upside down car loans (meaning the debtor owes more on the loan than the car is worth) or upside down mortgages on investment property. Notably you cannot cram down mortgages on your residence. (To learn about other options for dealing with residential mortgages, check out Your Home in Chapter 13 Bankruptcy). There are some other restrictions on cram downs as well.

The below articles explain how cramdowns work, the restrictions on cram downs, and how to cram down car and mortgage loans.

Get Professional Help
Get debt relief now.
We've helped 205 clients find attorneys today.
There was a problem with the submission. Please refresh the page and try again
Full Name is required
Email is required
Please enter a valid Email
Phone Number is required
Please enter a valid Phone Number
Zip Code is required
Please add a valid Zip Code
Please enter a valid Case Description
Description is required

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you