CRAM DOWN CERTAIN DEBTS IN CH. 13 BANKRUPTCY!
In a Ch. 13 Bankruptcy, you may be able to “cram-down” certain secured debts. A “cram-down” means you can pay the lesser of the value of your collateral or the secured debt. If you have had your vehicle debt for two and half years, you can pay just the value of the vehicle and not the entire debt. For example, if you have owned your vehicle for 910 days and your vehicle is only worth $8,000.00 and you owe $15,000.00, you can pay your creditor $8,000.00 over a period of time. This may allow you to lower your vehicle note.
In a Chapter 13, you can cram-down other debts if you have had the debt for over a year. For example, you may be able to “cram-down” your mobile home, furniture notes, and appliances.
Ch. 13 Bankruptcy Can Include: