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Chapter 13 filing and cram downs and loan modification

  • 1.  Chapter 13 filing and cram downs and loan modification

    Posted Nov 29, 2020 08:32 AM
    Hello,

    We have a member with an auto loan, and will re-pay a portion of the loan through the plan.  How do you handle the accounting for this, and the modification of the loan?  We need to charge off a portion of the balance, and modify the interest rate, payment amount, term, etc.  Do you create a new 'trustee' loan?  Do you simply modify the loan, as is?  Any detail you are willing and able to share will be greatly appreciated!

    Thank you,

    Joe​

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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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