QUESTION
I attended the Chapter 13 Cram Down and Strip Down teleconference. In the materials I received there were 33 pages of pleadings that provide samples for the Strip Down procedure. However, there are no pleading samples for first mortgage cram downs. Where do I get this information?
ANSWER
The attorney said that in the case of a cram down, the Trustees have not required her to file a Motion. The Motion is only required for stripping the second since it is an elimination of debt. However, in a cram down, when the debt is not being eliminated but proposed to be paid at a market value amount, this is simply proposed within the Chapter 13 Plan itself.
If there are no objections from the mortgage bank, the cram down is allowed in hardship situations. The key is the word HARDSHIP. If the debtors can afford to pay more than the base market value, the court may require them to pay more. This is why the balancing of Schedule I and J are so important when the petition is first filed.
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