I am filing for Chapter 13 bankruptcy and purchased a car in May 2006 and refinancd it in May 2008. Is the car still eligible for the cram down since I owe over $9,000 more than the car's value.
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No, the refinance precludes the cram down. The "loan" must be 910 days old. If the refi was a refi of the PMSI (Purchase Money Security Interest), then it counts as PMSI and therefore must be 910 days old (Note, there may be some districts that do not hold to ta rule, but I don't know where they are). -
One of your people posted this reply to the same question:
Yes! Even if you refinanced it through the same company.
For all intents and purposes, re-financing destroys what is called the "purchase money" aspect of your purchase. In order for your loan to be subject to that portion of the Bankruptcy Code 1325(a)(5) which prevents cramdown, it would have;
been purchased within 910 days of filing the petition; AND
been a purchase money loan (purchase money security interest); AND
been purchased for personal use
Since your loan is a refinance... you'll have no issue.
Is this not true since the original purchase was more than 910 days???Comment
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