If you’re a business owner, do you know that you might be eligible for a cram down?
Most people think that cram down is only applicable to personal bankruptcy – often the Chapter 13 cases. While this is true before, this isn’t the case anymore. Chapter 11 Bankruptcy cases are also allowed to qualify for a cram-down.
One reason is financial crises: when such a crisis hit an economy, it crushes businesses (among others, of course) – the very engine of the economy. To help the economy recover, businesses are allowed to “cram down” to help them get up again as much as possible and start earning an income again – hence helping the entire economy.
It is, then, in the best interests of all parties – the business (the debtor), the creditors, financial institutions and the government – to have businesses booming again after the crisis.
If you’re a business owner, especially if you own a partnership business or corporation, and if you’re under a bankruptcy case, you should check out if you are qualified for a cram-down.
To learn more about cram down and if you know if you’re qualified, have a bankruptcy lawyer so you can receive professional advice.
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