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A Chapter 13 requires that the debor apply all of his or her disposable income towards payment of the confirmed plan. To the extent that the plan provides more payment to unsecured creditors than they would receive in a Chapter 7, but less than 100% payment, the entire plan operates as a global "cramdown" of all unsecured debts.
Secured creditor claims on personal property are similarly defeated to the extent that the actual value of the collateral is less than the amount due the creditor.
Real property, however, is not similarly situated. Secured claims on a debtor's principal residence may not be stripped or subjected to a cramdown. An attempt to change this rule was defeated by the Senate last March, and there appears to be no willpower in Congress to change the situation.
Hope this helps.
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Sir Where is your office? I am a retired Postal worker and my income is going to increase. Can I put your feee on the Chapter 13? I believe The Bank has placed a 362 to have the stay lifted. I have a property in Fla and the legal aid people in Fla. are fighting because Countrywide has lost the mortgage and the deed. I have to submit a revised plan today. I think that if we cramdown too much we may exceed the unsecured limits. I need your help now?
I'm flattered by your request, however, I am not taking cases at this time. I "just answer" questions about the law in this forum.
If you need a lawyer to represent you, please see: http://www.abanet.org/legalservices/lris/directory/main.cfm?id=FL and www.martindale.com.
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