Bankruptcy by Keyword:
Chapter 13 .
mortgage modification .
secured debt .
Definitions from the USDOJ
- undersecured claim: A debt secured by property that is worth less than the full amount of the debt.
Case Law Topics
Section 1332(b)(2) prevents cramdown of residential mortgages which it describes as claims secured by a primary residence. Here are cases that talk about whether specific fact patterns do or do not fit within the protection of this section.
Can a debtor deduct the full amount of current monthly under-secured debt payment if debt will be crammed down in a Chapter 13 plan
The 2005 bankruptcy amendments added a "hanging paragraph" (that is, doesn't have a separate subsection like all paragraphs should) to section 1325(a) that says that you cannot cramdown an purchase-money auto loan that was obtained less than 910 days
The question is whether when a debtor turns in a car for a trade in, whether the part of the new car loan that is meant to pay off the balance on an old car loan in included in the amount that is by the no-cramdown protection of 1325(a)
It is neither "all or part of the price" of a new car nor is it "value given to enable the debtor to acquire rights in or the use of" a new car