Cram Downs and Bankruptcy
A “cram down” is an act by the court to reorganize the terms of a mortgage when a person files for bankruptcy. This type of action is usually used in the context of corporations, but in light of the recent financial crisis, it has been used in personal cases as well. According to U.S. law, when you file for bankruptcy, the court cannot perform a cram down on your primary residence.
To find out more about bankruptcy and cram downs, contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A., at 561-353-2800 as soon as possible. Financial crises can take a significant toll on your life, making everyday activities difficult and stressful. For many people, bankruptcy can provide much-needed relief and a fresh financial start.
What Powers Do the Bankruptcy Courts Have?
After the subprime mortgage financial crisis, some people thought that cram downs would help to lower mortgage rates for struggling homeowners. Cram downs affect loans by:
- Altering the loan’s value
- Managing relations between creditors and debtors
At this time, the bankruptcy courts cannot perform personal cram downs. Speak with an attorney today to find out about other powers of bankruptcy courts.
Contact Us
If you or a loved one is embroiled in financial troubles and needs help, speak with a Boca Raton bankruptcy attorney from Eric N. Klein & Associates, P.A., at 561-353-2800 today. Our experienced legal professionals can discuss your individual case, free of charge. You deserve to get the help you need to start fresh.
