Cramdowns

If you own rental or commercial property, bankruptcy may provide you a way to reduce your mortgage to the current market value of the property and reduce your interest to the current market rate. This is sometimes called a “cram down.”

At the Orantes Law Firm, in Los Angeles, lawyer Giovanni Orantes is dedicated to helping commercial and rental property owners throughout Southern California obtain relief from mortgage debt by filing bankruptcy. We offer a free initial consultation to look at the challenges you face and give you honest answers about your rights and options. 

What Is a Cram Down?

A cram down can actually refer to two different things in bankruptcy. In a Chapter 11 filing, it refers to a bankruptcy court “cramming down” a reorganization plan over the objection of creditors. The term has also come to refer to a court-ordered modification of mortgages on rental or commercial property in Chapter 11, Chapter 12 or Chapter 13 bankruptcy filing.

Cramdowns can be used with all types of commercial property, including: 

  • Multiple-unit apartments
  • Duplexes
  • Retail stores
  • Office buildings
  • Warehouses
  • Manufacturing buildings

Cramdowns can be used to change the terms of any loan that is secured only by the principal resident. It can even be used in the case of a duplex or multiple-unit apartment when you live in one of the units.

If you have multiple mortgages on your property, bankruptcy may also allow you to strip the liens from junior mortgages.

Contact Los Angeles Cramdown Attorney Giovanni Orantes

For more information about how to reduce your commercial and rental property payments to an affordable level, call (213) 340-0534 or contact us by e-mail to schedule a free initial consultation and learn more. Se habla español.