Can I cram down on my car loan after my Chapter 7 has been discharged?

Asked on October 6, 2014 under Bankruptcy Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

No, you can't do this:

1) You can only do a "cram down" in bankruptcy, as part of the bankruptcy, and *not* after discharge; and

2) A cramdown is only allowed in Chapter 13, not Chapter 7.

Nothing stops you from talking to the lender and trying to voluntarily renegotiate the loan, of course; but the lender will have very little incentive to do this.

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