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Chapter 13 Bankruptcy Auto Cram Downs and Trustee Loans

  • 1.  Chapter 13 Bankruptcy Auto Cram Downs and Trustee Loans

    Posted 28 days ago

    Hey folks,

    How do you handle accounts/accounting for accounts with cram downs and intent to pay on an auto loan with a Chapter 13?

    Do you set up a "trustee loan?"

    Do you call it a trustee loan, or something else? 

    Which account holds the crammed down amount, and which account holds the amount that will be paid by the trustee? 

    When do you charge off the crammed down amount?

    How do you report to the credit bureaus?

    Thank you and Happy Holidays!



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    Joe Gallagher
    Director, Member Support
    Vermont FCU
    Burlington VT
    802.923.1147
    Manager/Loan ServicingManager/Loan ServicingManager/Loan ServicingManager/Loan Servicing
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