Cramdown lowers vehicle loan payments and the total paid on the loan. But you can also get similar benefits on other personal property debts.
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.
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."
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.
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.
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.
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."
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.
How Chapter 13 helps you keep personal property collateral on a debt (such as furniture bought on credit) for less money through cramdown.
A business leases may not be a true lease but rather recharacterized as a secured purchase, giving you significant power over the creditor.
To determine whether a "lease" is actually a disguised secured purchase the bankruptcy court looks at the deal's economic substance.
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.
"Cramdown" of your vehicle loan can solve the problems of a reaffirmation agreement by lowering payments and protecting you much better.
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.
Chapter 13 helps if you owe divorce debts, have personal property collateral, are behind on property taxes, or owe old and new income taxes.