Cramdown on Furniture and Other Personal Property Debts
Cramdown lowers vehicle loan payments and the total paid on the loan. But you can also get similar benefits on other personal property debts.
How a cramdown saves money
Here's an example of vehicle loan cramdown that shows how you can reduce your vehicle payments and be free and clear after paying less.
Cramdown on Vehicle Not Bought for Personal Use
The 910-day condition for doing a vehicle debt cramdown doesn't apply if the vehicle was not "acquired for the personal use of the debtor."
Cramdown on Collateral Not Purchased with the Debt
The 910-day & 1-year conditions for doing a Chapter 13 cramdown don't apply if the creditor doesn't have a purchase money security interest.
Verifying that a Creditor Has a Valid Security Interest
A creditor's rights over you in either Chapter 7 or 13 vastly increase if it has a security interest. Now's the time to find out for sure.
Example of Reaffirming vs. Cramming Down Furniture Loan
An example comparing the reaffirmation of a debt secured by furniture in a Chapter 7 case and cramming down that debt in a Chapter 13 case.
Timing: Qualifying for Cramdown on Personal Property Collateral
Chapter 13 cramdown doesn't just work for vehicle loans. You can also cram down debt for the purchase of "any other thing of value."
Timing: Qualifying for Vehicle Loan Cramdown
If your vehicle is worth less than you owe on it, with good timing cramdown could reduce your monthly payment AND the total amount you pay.
Cramdown on Debts Secured by Personal Property
How Chapter 13 helps you keep personal property collateral on a debt (such as furniture bought on credit) for less money through cramdown.
Business Leases Recharacterized
A business leases may not be a true lease but rather recharacterized as a secured purchase, giving you significant power over the creditor.
The Difference between a True Lease and a Secured Purchase
To determine whether a "lease" is actually a disguised secured purchase the bankruptcy court looks at the deal's economic substance.
Leases that Are Actually Secured Purchases
A "lease" of furniture or other consumer goods may actually be a disguised purchase. If so, through "cramdown" you can pay much less on it.
Lowering Your Vehicle Loan Payments through Chapter 13 Bankruptcy
"Cramdown" of your vehicle loan can solve the problems of a reaffirmation agreement by lowering payments and protecting you much better.
A Fresh Start on Your Vehicle Loan through Chapter 13 “Cramdown”
If your vehicle is worth less than you owe, Chapter 13 "cramdown" can reduce your monthly vehicle payment and the total you pay on the loan.
Giving Final Thanks for Chapter 13 “Adjustment of Debts”
Chapter 13 helps if you owe divorce debts, have personal property collateral, are behind on property taxes, or owe old and new income taxes.
