If you are a creditor with a security interest in the debtor’s assets, ask yourself if the value of your collateral is properly listed in the plan or whether it should be given a higher value. If you do not agree with the value, you must take action to prevent the value listed by the debtor from being the amount of your allowed secured claim. Reducing your claim to the value of the collateral is referred to as “cram down.” “Cram down” means the that the debtor can keep the collateral by paying the secured creditor only the present value of the collateral, plus interest over the life of the plan.
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