What many of our client’s and others did during the real estate boom of the last decade was purchase investment properties in order to enhance their financial future. With property values 30 to 40 per cent below the original purchase price combined with increasing mortgage rates, real property owners have been pushed to seek relief through filing for Chapter 11 Bankruptcy. One of their hopes in filing a Chapter 11 is to obtain acceptance of a cram down. Under certain circumstances, the bankruptcy court may "cram down" a plan over the objection of creditors. The term "cramdown" comes from the idea that the loan changes are "crammed down" creditors' throats - they can either renegotiate the loan through a Chapter 11 reorganization, or lose everything through a Chapter 7. Individuals and business owners should understand the risks and rewards of filing Chapter 11 bankruptcy. You should do your own independent research, contact a qualified attorney and accountant who are familiar with the strict mandatory Chapter 11 Bankruptcy filings in order to have an successful outcome.
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Refereces: http://www.uscourts.gov/Home.aspx
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