Cram Downs

As cars and other items of personal property depreciate so quickly, many people find that they owe more on a car or furniture loan than the property is worth.

Chapter 13 offers a solution to this problem of being "upside down" or "under water" on a vehicle or furniture loan. To solve this problem, it is possible in some cases to pay for the vehicle or furniture through the Chapter 13 case and pay the creditor the value of the vehicle or furniture. This is known as a Chapter 13 cram down. You pay the value and still receive full ownership upon completion of the plan. If you pay for your vehicle in this manner, you will receive your title free and clear upon completion of the plan.

This valuable option is not available in all situations. You must have been purchasing the vehicle or furniture for certain lengths of time in order to take advantage of this Chapter 13 benefit.

The attorneys at Harbour Law can advise you as to whether this option is available to you. Call now for a free initial consultation with an experienced Bankruptcy attorney who can help you resolve your financial problems.