Expert Representation for Creditors and Private Lenders in Cramdown Cases

Tatman Legal, serving Arizona, California, Florida, Oregon, Texas, and Washington, specializes in defending creditors and private lenders in Chapter 13 cramdown cases. We understand the intricacies of cramdowns in bankruptcy and are dedicated to protecting the financial interests of our clients.

Understanding Cramdowns in Chapter 13 Bankruptcy

A Chapter 13 cramdown allows debtors to reduce the principal balance of a secured debt to the asset’s current market value. This process can significantly impact the recoverable amount for creditors, making effective legal representation crucial.

The Cramdown Process and Its Implications

Cramdown Provisions: Under Section 1129(b) of the Bankruptcy Code, courts can approve a debtor’s reorganization plan over a creditor’s objection if it is “fair and equitable.”

Restrictions and Limitations: Cramdowns apply to various loans, including vehicle, personal property, and non-primary residence mortgages, but are subject to specific rules such as the 910-Day Rule for vehicles and the One-Year Rule for personal property.

Impact on Creditors: Cramdowns can lead to lower repayments for creditors, necessitating a strong legal strategy to ensure fair treatment.

How Tatman Legal Defends Against Cramdowns

Analyzing Cramdown Proposals: We thoroughly review cramdown proposals to determine their impact on our clients.

Challenging Cramdowns in Court: Our experienced attorneys represent creditors in court to challenge cramdowns, ensuring their rights are protected.

Negotiating Favorable Outcomes: We engage in negotiations to find solutions that better serve our clients’ interests.

Monitoring Compliance Post-Hearing: After a cramdown ruling, we ensure the debtor complies with the revised terms to safeguard our clients’ recoveries.