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Cramdown in Chapter 13 Bankruptcy


In Chapter 13 bankruptcy, a cramdown is the confirmation of a reorganization plan over the objection of a secured creditor holding a claim in an amount greater than the value of the collateral. The court may "cram down" the creditor's claim to the value of the collateral, and confirm the plan.


A cramdown is not available in Chapter 7 bankruptcy. In a Chapter 7 liquidation, secured creditors are paid first from proceeds of the sale of collateral. Unsecured creditors are paid from any remaining proceeds. If there are no proceeds, unsecured creditors get nothing.


A cramdown may be available in a Chapter 11 reorganization if the debtor can demonstrate that it is not feasible to reorganize without modifying the rights of at least one impaired class of creditors.





The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.



Our main goal is to help you find a fresh start FAST!


Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706






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