Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

cram-down

Read a random definition: possessory warrant

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.

COVID-19 Resources | credibility

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
LSD+ is ad-free, with DMs, discounts, case briefs & more.