CH 7 Cramdown for investment property - how does it work?

Asked over 2 years ago - Norfolk, VA

after the cramdown process (investment property) in a CH7, can the CH7 be converted to a CH13? Investment property in foreclosure, 50% underwater, currently leased.

Attorney answers (3)

  1. Mitchell Paul Goldstein

    Contributor Level 20

    1

    Lawyer agrees

    Answered . Redemption is for personal property. If you convert, you will need to qualify for a 13 (may be a problem if you exceed the debt limits) AND you need a plan that can pay off the value over 3-5 years. See local lawyer for a complete review.

    Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice.... more
  2. Alan D. Walton

    Pro

    Contributor Level 19

    2

    Lawyers agree

    Answered . Cramdown (forcing the lender to accept actual value with payments over time) is a chapter 13 process. The chapter 7 equivalent is redemption (lump sum payment of actual value). So cramdown does not work in a chapter 7, and you question is not answerable. Best to consult with an attorney who knows these things.

  3. Jeffrey B. Lampert

    Pro

    Contributor Level 19

    Answered . A "cramdown" can occur only in a Chapter 13, not a 7, as my colleagues have noted.

    I hope you found this response to be of assistance. This response shall not be considered the rendering of... more

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