What Is Cram Down And Collateral Valuation?
If you are a creditor with a security interest in the debtor's assets, ask yourself if the value of your collateral is properly listed in the plan or whether it should be given a higher value. If you do not agree with the value, you must take action to prevent the value listed by the debtor from being the amount of your allowed secured claim. Reducing your claim to the value of the collateral is referred to as "cram down." "Cram down" means the that the debtor can keep the collateral by paying the secured creditor only the present value of the collateral, plus interest over the life of the plan.
Other Oregon Collections-Creditors Rights FAQs
-
Q:
What Is Repossession?
A: When you buy something on credit, or get a loan, the person or business you owe the money to be called the "creditor." Often when you buy on credit, or get a loan to …
More
-
Q:
What Is A Debt Reduction Settlement?
A: A Debt Reduction Settlement is a process used by both debtors and creditors to settle a debt for less than what is owed. The process may also be referred to as Third …
More
-
Q:
What Is The Statute Of Limitations (In Years)?
A: Open Acct.: 6 Sale of Goods: 6 (4 yrs UCC Transaction) Written Contract: 6 Domestic Judgment: 10 Renewable at 10 Foreign Judgment: 10
More
Collections-Creditors Rights Sub-categories
