There are all different types of terminology that appears with a bankruptcy. Many of these are legal terms, and it can be really difficult to understand what it all means to the lay person who has no legal knowledge. It is important to use a Fairborn bankruptcy attorney throughout the entire process which helps for many reasons, including helping the individual understand what all the different terms mean. A good example of this is the term cram down.
This applies to a chapter 13 bankruptcy, and what it pertains to is allows you to bring down the amount of money owed on a secured property to the value that it is secured by. This is important because it might put you into a position where you will be able to keep that secured property. It might be property such as real estate that you have invested in or perhaps your vehicle. These are important items that people worry most about losing whenever they go into a bankruptcy.
You need to determine what are your secured debts? These are easy to identify because they are the ones that have security against them. This means that if you default on your loan then the creditor can take that property. There are some secured debts that you can use the cram down practice for and others you cannot. For example, you may be able to use it for property that you have bought as an investment, but you would not be able to use it for the residence you live in.