
Auto Loan “Cram Downs”
Chapter 13 Bankruptcy Attorneys in Los Angeles
One benefit of a Chapter 13 bankruptcy is the auto loan “cram down.” Under certain circumstances, the outstanding balance on a car loan can be reduced to its fair market value. This can be very beneficial to people who are “upside down” on their car loans and owe more than their car is worth. If you have questions about auto loan cram downs and are considering bankruptcy, the attorneys at RHM LAW LLP are here to help. We are committed to helping you resolve your debt problems while keeping your property.
Schedule a 30-minute complimentary consultation with our Los Angeles bankruptcy lawyers when you contact our firm today.
How Does a Cram Down Work?
Since cars depreciate so quickly, it is not uncommon for a person to owe significantly more on the vehicle than it is actually worth. Chapter 13 bankruptcy offers relief to people who are in this situation. A Chapter 13 cram down allows you to modify your car loan and pay less than the original terms of the loan.
For instance, if you owe $15,000 on a car, and its fair market value is determined to be $10,000, a Chapter 13 bankruptcy will strip $5,000 of debt off of your shoulders and give you three to five years to pay the remaining balance.
In order to qualify for an auto loan cram down, you must have purchased the vehicle no sooner than 910 days prior to the bankruptcy filing.
To determine if you are eligible for an auto loan cram down, it is important to consult with an experienced bankruptcy lawyer.
Contact Our Los Angeles Bankruptcy Lawyers
Our offices are open weekdays from 7:00 a.m. to 7:00 p.m., and we serve clients in the Los Angeles area and San Fernando Valley through offices in Encino and Los Angeles.
To learn more about filing for bankruptcy with RHM LAW LLP, call us at (213) 344-0043 today.

RHM LAW LLP
Meet Our Los Angeles Bankruptcy Specialists
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M. Jonathan Hayes Senior Counsel
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Matt D. Resnik | Managing Partner Certified Bankruptcy Specialist
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Roksana D. Moradi-Brovia | Partner Certified Bankruptcy Specialist
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W. Sloan Youkstetter | Associate Attorney Certified Bankruptcy Specialist
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Russell J. Stong III | Associate Attorney Certified Bankruptcy Specialist
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David M. Kritzer Associate Attorney

Client Reviews
What Clients Say About Working With Us
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Fantastic office! I want to thank Matt for taking his time with me and sincere in his assistance. He spent over an hour with me for free during our initial consult. I left knowing exactly what's needed. He not only saved my house but also got rid of all my debt. They are not your typical attorneys and their creativity really allowed me to do things that other attorneys never mentioned in previous consults. Affordable and Outstanding firm and thank you for all you have done! My family thanks you!- David K.
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Thank you for your great work on behalf of Ms. Johnson. Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding.
- Skip K. -
I needed a bankruptcy attorney in Sherman Oaks and found Matt Resnik on Google. He has one of the best-reviewed bankruptcy law firms on Yelp so I decided to check it out his law firm for myself. I quickly found out that they are foreclosure specialists and they could help me with my issue. They made the process very easy for me and laid out my options for me. I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home. They are the best bankruptcy law firm in Sherman Oaks.- Joseph R.
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Where to begin? I had a vile evil credit union repo my car over a misunderstanding, they wouldn't work with me even when I offered full payment plus repo fees (this was my first repo!) so I didn't know what to do. I met with a few lawyers but when I met with Simon he broke things down and gave me my options. I needed a car - so I filed BK and included the car to get it back. The evil credit union fought and Simon GOT ME MY CAR BACK!!! His team is amazing!!!! Maria Donna etc!!! These are top-notch pros that'll have your back. I cannot recommend them highly enough. Sincerely they saved my life. LA with no car!? ARGH!!!!!! *THANX ALL!!!!- Tim C.
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I worked with David Kritzer at this firm, and he was great. He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own thanks to his knowledge and expertise in the field. If you have a debtor on your back go to him to get it taken care of.- Kelly S.
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Was very impressed with the comprehensive professionalism of the firm, especially Matthew Resnik... I had suffered through the incompetence of two previous bk lawyers not to mention fees far greater than anticipated, without resolution. Having never gone through bk before, I did not realize how difficult it could be...then, my case was turned over to Mr. Resnik...almost immediately there was a marked positive difference. Where there was little to no communication, all of a sudden I am getting updates...regularly. Further, my case was finally discharged...yet, Mr. Resnik continues to communicate, offer assistance...and, has NEVER asked for additional fees, which I am sure he could have justified...much unlike the two previous attorneys with which I was dealing. I have no reservations, whatsoever, referring and recommending Matthew Resnik for any and all business or personal bk issues...or, other wise. I have no doubt that he will be transparent on helping you regardless of the problem. Good guy.. good firm... a wonderful experience!
- G.L -
Matt is the best bankruptcy attorney in Sherman Oaks. I consulted with Matt over a chapter 7 bankruptcy. I had issues with overwhelming credit card debt after Chase increased it's APR for no reason. It set off a chain of events that were really hurting me. He made me feel like I had options, all was not lost, and I could rebuild my credit after the 7. I had some concerns about a piece of property I was having issues with and Matt also turned out to be a real estate lawyer as well! I recommend this office to anyone who is unsure of their financial situation. It doesn't hurt to find out your options.- Max B.
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Matt and his team are the best!! They were thorough, extremely knowledgeable, wonderful to deal with, thoughtful, and really helped guide me through what was one of the toughest times in my life. I never felt judged or looked down on. They were efficient and really were lifesavers during this tough time. I can not recommend them highly enough!!!!- Rusty H.
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I filed bankruptcy with this firm 3 years ago and found that they are professional, friendly, and compassionate. I also met with their loan modification department. Unfortunately, they were unable to help because of the type of loan that I have. I really appreciated that they did not lie, waste my time, or take my money in an attempt to modify a loan that was not doable. I've since used their firm for a couple of minor issues and found all of the attorneys to be knowledgeable and considerate. Attorneys Simon and Resnik are amazing!- Shannon J.

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A Summary of Bankruptcy Law: Third Edition
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Summary of Chapter 13