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Simple English definitions for legal terms

cram-down

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A quick definition of cram-down:

Term: Cram-down

Definition: Cram-down is when a court makes a creditor accept new loan terms during bankruptcy. This is usually done in Chapter 13 bankruptcy to reduce the amount owed to a creditor to the value of the collateral. For example, if someone bought a car worth $25,000 with a loan, but the loan grew bigger with interest, cram-down would reduce the debt to $25,000. Cram-down cannot be used for a mortgage on a person’s home, but it can be used in some situations in Chapter 11 bankruptcy.

A more thorough explanation:

Cram-down refers to a legal process where a court forces a creditor to accept new terms of a loan in bankruptcy proceedings. This tool is most commonly used in Chapter 13 bankruptcy cases to reduce the debt owed to a creditor to the value of the collateral.

Let's say someone bought a car worth $25,000 with a loan. Over time, the loan would accrue interest, and the overall loan size would increase. If the borrower files for bankruptcy, they may be able to use cram-down to reduce the debt owed to the creditor to the value of the car, which is $25,000. This means that any debt above $25,000 would be eliminated, and the borrower would only have to pay back the original value of the car.

It's important to note that cram-down cannot be used for a mortgage on a person's dwelling. However, it can be used in Chapter 11 bankruptcy in some situations.

The example illustrates how cram-down works in a Chapter 13 bankruptcy case. By using cram-down, the borrower can reduce their debt to the value of the collateral, which is the car in this case. This can help the borrower to manage their debt and make it more manageable to pay back. However, it's important to note that cram-down is not available for all types of debt and is subject to certain limitations and restrictions.

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Nah not in my case lol. It's cus you posted in general! That way you could tag me!
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[] notacat
20:50
Do you guys know if the LSAdmit program is working on your end right now? It's not working on mine
20:53
Anyone here done the Cornell Kira? Was wondering if anyone had any tips 🙏
21:13
@KnowledgeableRitzyWasp: ^^ seeking corn-hell advice
21:15
@babycat: unrelated but every time I saw ur old handle i thought of this lyric: https://youtu.be/V90loMCyxa0?t=34
What does "Hold" mean on the result column?
21:28
@ClockworkBlue: on LSD?
yeah
babycat
21:30
A hold is not exactly a waitlist, but it means they’re waiting to give you a decision later
babycat
21:31
@llama: nice
21:32
@ClockworkBlue: what babycat said, the link reads as the school always initiates the 'hold' status, however [in my case] sometimes applicants ask to be placed on 'hold' pending a score (LSAT, final semester of UG, etc).
21:32
@babycat: just had to get that off my chest.
cornell kira is just about performing well under pressure and having substantive content in your questions
so just try to stay calm and pace your responses so you give good answers during the interview
21:44
so just don't sperg out on camera and ur good?
yeah pretty much, you get some leniency too. they expect you to not be perfect under pressure
babycat
22:09
i’m sleepy :(
go to sleeb
ShiveringCleverFlounder
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Hey guys it all works out, I’m in law school now with a phat scholly just so yall know there’s light at the end of the apps tunnel
Wrong I’m homeless
ShiveringCleverFlounder
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bro what
m10
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Wow, Stanford PhD big brain here. Yikes!: https://x.com/dotkrueger/status/1850698550297899235
WorthlessAttractiveZombie
8:34
My berkeley person ID and application ID are gone again lol. they are playing with us
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Aye gang (esp. @shaquilleoatmeal) so I went with Zanzibar City over dolphins and I 100% do not regret it. One of the highlights of my whole Africa trip, lovely to see all its cultural blends and architecture. You should all visit this place in your lives, seriously
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