Is it possible to reduce the amount of my secured debt in Chapter 13 Bankruptcy?

Yes, it is possible to reduce the amount of your secured debt in Chapter 13 Bankruptcy in West Virginia. This is known as a “cram down.” A cram down works by allowing you to reduce the amount of your secured debt to the current market value of your collateral. This means that if the collateral currently has a value that is less than what you owe, you can reduce the debt to that value. However, this does not always work. In order for a cram down to be successful, you must meet certain qualifications. The primary qualifications are that the debt must be secured by a motor vehicle, home, or other property, and that the property must have been purchased more than 910 days before the filing of your bankruptcy petition. Additionally, you must also demonstrate that if you could not reduce the debt to the collateral value, you would be unable to make your Chapter 13 payments. In summary, yes, it is possible to reduce the amount of your secured debt in Chapter 13 Bankruptcy in West Virginia, if you meet the necessary qualifications. Reducing this debt can give you more room in your budget to make your Chapter 13 payments, and ensure that your bankruptcy case is successful.

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