Can someone clarify this for me?

[daisey]

a creditor has a secured claim only to the extent of the value of its security, which cannot exceed the value of the property securing the claim. Thus, a creditor with a mortgage on, say, a $1500 automobile cannot have a secured claim for more than $1500, regardless of how much is owed to the creditor. If the debtor is in default to a secured creditor, the default must be cured (made current) within a reasonable time. Also, interest must be paid on secured claims.

I think this means that they cannot claim more then what the value of the property is. Am I understanding this correct. So I am thinking if you owe say 3000 and the property is only appraised at say 1500, a creditor can't seek a payment of more then the 1500........or is this a pipe dream?

[HHM]

In what context...are you asking 'generally', in bankruptcy etc.

You are part right and part wrong. A secured creditor has a "claim" for the entire amount of the "note" (a contract claim). The payment of the "Note" is secured by an asset (hence, it is a secured claim). So in the event of non-payment, the secured creditor can enforce their "note" against the securing collateral. If after repossession and sale of the collateral, and if the proceeds are insufficient to reimburse the secured creditor for the full amount of their Note, then they are generally entilted to seek a deficiency balance as an unsecured claim.

[keepmine]

I think you're refering to the ole "cramdown". BK reform pretty much did away with that except for auto loans in a Chapter 13. Even there, you need to have owned the car for more than 910 days befoe you can reduce the loan to FMV.
About all you can do is see if you can arrange a 722 redemption loan {if the lender will cooperate}.

https://www.722redemption.com

[SinkingFast]

Yep. That sounds like "Cram Down" verbage to me. And Keepmine is right about the timeline. It's something like 2.5 years ownership required before you can negotiate a Cram Down under New Law.

[SinkingFast]

Evidently, in reference to car loans, this has become known as a "910 Vehicle". And the entire loan can be considered Secured. Therefore, "Cram Down" may not be allowed.

Debtors may have to pay the full loan amount on a retained "910 Vehicle". If the Debtor surrenders a "910 Vehicle", the Debtor will have to satisfy the remainder of the loan to the Creditor.

http://www.bankruptcyforum.com/showt...1410#post81410