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Experienced lawyers, driven to succeed on your behalf.


Experienced lawyers, driven to succeed on your behalf.

Questions About Loan Cram-Downs?

In these tough economic times, many people are finding it difficult to make high car loan payments. It can be very frustrating to realize that the value of your car is substantially lower than what you still owe on your car loan, taken in better financial times when it was valued significantly higher.

Filing for Chapter 13 bankruptcy provides an opportunity to make your financial obligations more manageable. To eliminate the debt that exceeds the value of your vehicle, call the savvy Harrisburg loan cram-down attorneys at Jacobson, Julius & Harshberger for a free, no-pressure consultation.

Skilled Chapter 11 and 13 Bankruptcy Attorneys

Although there may be other options available depending on your unique circumstances, including loan modification, Chapter 13 bankruptcy (or Chapter 11 bankruptcy under certain circumstances) offers a practical solution to keep your property and slough off debt caused by value that disappeared due to the financial crisis. A “loan cram-down” eliminates the amount of your loan that exceeds its current value and may also alter the terms of the loan to make payments more manageable. This process may also have the effect of improving your relationship with your creditor, as it demonstrates your willingness to meet your legal and financial obligations.

Loan cram-downs are subject to what is known as the 910 day rule, which basically means that the loan must have been secured more than 910 days prior to be eligible for cram-down.

This process is particularly well suited to modifying car loans. Unfortunately, you are not able to cram-down your mortgage. You do have the option, however, of stripping a second lien on your home through Chapter 11 or Chapter 13 bankruptcy. Loan cram-downs are not available in Chapter 7 bankruptcy.

Discuss Debt Reduction With Our Law Firm

If you have questions about seeking a loan cram-down in Chapter 13 bankruptcy, contact us online today. You can also call us any time at 717-909-5858. Our law practice helps people throughout South Central Pennsylvania find solutions to make debt more manageable. We are located in Harrisburg, and in your location by appointment only.

We are a debt relief agency. We help people file for bankruptcy protection under the Bankruptcy Code.