Fourth Circuit Overrules Own Precedent, Holds Certain Primary Residence Claims Can be Crammed Down in Chapter 13 Bankruptcies

(First published here on August 19, 2019. Used with permission.)
By Daniel Cohn, Esq., Legal Department, Wells Fargo Bank, N.A.

General Rule: No Primary Residence Mortgage Changes

The general rule in bankruptcy is that debtors cannot cram down loans secured only by mortgages on their primary residences. But wait, “what’s a cram down?” you ask. For non-bankruptcy folks, a cram down . . .

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