What is a Cram Down?

If economic conditions continue to worsen and more people face the possibility of bankruptcy or home foreclosure, economists and other professionals have discussed the possibility of issuing a “cram down” to assist creditors and debtors alike. There were over 1.5 million bankruptcy filings in 2010, an 8.1 percent increase from the previous year. Cram downs are intended to assist debtors in rebuilding their lives after bankruptcy.

Cram downs are usually used in Chapter 11 bankruptcy cases, but at the Harmon Law Office, LLC, we have experience helping individuals file for a variety of different types of bankruptcy. To speak with a qualified Arizona bankruptcy attorney about your legal options in the face of financial difficulties, contact us today at 480-829-0494 and schedule an initial consultation.

The Purpose of a Cram Down

A cram down is when banks or lenders decide to modify the terms of a loan to help a debtor. A cram down does the following:

• Takes the loans on primary residences and restructures them
• Attempts to benefit the relationship between debtors and creditors

Unfortunately cram downs do not always work. In fact, it has been shown that in some cases, a cram down harms debtors and creditors alike. As such, it is important to talk to an experienced legal professional about all of the options that are available to you if you are experiencing serious financial troubles to make sure you choose the best course of action for your circumstances.

Contact Us

Contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, today at 480-829-0494 to learn more about how we can help you deal with your financial difficulties.