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

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.

Norfolk, VA -

Attorney Answers (3)

Mitchell Paul Goldstein

Mitchell Paul Goldstein

Bankruptcy Attorney - Glen Allen, VA
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
Alan D. Walton

Alan D. Walton

Bankruptcy Attorney - Birch Run, MI
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.

Jeffrey B. Lampert

Jeffrey B. Lampert

Bankruptcy Attorney - West Palm Beach, FL
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

Related Advice

Questions? An attorney can help.

Ask a Question
Free & anonymous.
Find a Lawyer
Free. No commitment.