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Cramdown in Chapter 13 Bankruptcy

If you're considering Chapter 13 bankruptcy, you may be wondering if a cramdown is possible. A cramdown is when the court approves a reorganization plan that pays creditors less than what they're owed. It's important to know that not all creditors are eligible for a cramdown and that there are certain requirements that must be met.

In order to qualify for a cramdown, the debt must be secured by collateral, such as a car or home. The value of the collateral must be less than the amount owed on the debt. For example, if you owe $20,000 on your car loan and your car is only worth $15,000, you may be able to get a cramdown.

Not all creditors are eligible for a cramdown. Priority creditors, such as child support or alimony payments, cannot be crammed down.

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 goal is to help you find a fresh start FAST!

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


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