Cram Down in Chapter 13 Bankruptcy

Posted on October 10, 2010

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Sometimes a Chapter 13 bankruptcy, which differs from other bankruptcy agreements in that you must eventually pay your lender, is ordered into effect by the bankruptcy court, effectively “crammed” onto the creditors.

Some people refinance their second mortgage in an effect to keep their home, but can’t keep up the adjusted payment. Banks will not reduce the amount owed on loans to save the mortgagor from foreclosure.

The courts use the “cram down” method to modify most kinds of secured debt in bankruptcy proceedings, such as mortgages on vacation homes. A judge possesses the ability to reduce (cramming) amounts owed, sometimes just to the actual value of the collateral that secures it.

Creditors and lenders are opposed to the cram-down process, because they only get a portion of what they’ve loaned back, but with all the foreclosures going on, it sometimes is the only way to be reimbursed for part of the investment.

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

 See Axsmith.net for more details.  Christine Axsmith, Esq. is a Washington, DC – based attorney specializing in foreclosure fraud, illegal foreclosure, real estate fraud.  Her credentials can be viewed at her LinkedIn profile.  The Axsmith Law website has a wealth of information for review related to elder law and foreclosure prevention. 

 

 

AARP website, the Federal Trade Commission website and the HUD website.  See Axsmith Law web site to speak to an attorney.

 

 

www.axsmith.net
www.cnn.com
www.washingtonpost.com
www.huffingtonpost.net
www.foreclosure.com
Wikipedia on Foreclosure
HUD Foreclosure Prevention Programs
Foreclosure Houses – Get Your Name Off This List!
Foreclosure Misc
www.washingtonpost.com
www.huffingtonpost.net
www.foreclosure.com
Wikipedia on Foreclosure
HUD Foreclosure Prevention Programs
See more guardianship information at http://www.axsmith.net/Washington_DC_Guardian_Attorney.html

www.axsmith.net
www.cnn.com
www.washingtonpost.com
www.huffingtonpost.net
www.foreclosure.com
Wikipedia on Foreclosure
HUD Foreclosure Prevention Programs
Foreclosure Houses – Get Your Name Off This List!
Foreclosure Misc
www.washingtonpost.com
www.huffingtonpost.net
www.foreclosure.com
Wikipedia on Foreclosure
HUD Foreclosure Prevention Programs
Foreclosure Houses – Get Your Name Off This List!
Foreclosure Misc.

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