Cramdown in Chapter 13 Bankruptcy

A cramdown in Chapter 13 bankruptcy is when a court-confirmed plan allows a debtor to pay off a secured creditor's claim for less than the full value of the collateral. The debtor keeps the property and pays the creditor the balance of the claim over time, through the plan. This option is only available if certain conditions are met, such as the debtor being unable to get refinancing from another source.

A cramdown can be beneficial to both the debtor and creditor. For the debtor, it allows them to keep their property and avoid having to surrender it to the creditor. For the creditor, it ensures that they will receive at least some payment on their claim.

Cramdowns can be complex and difficult to obtain, so it is important to seek out experienced legal help if you are considering this option.'''

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