It definitely can, but not for every debt and only in Chapter 13 bankruptcies.
Basically, if your debt is more than one year old and is secured by collateral that is worth less than the loan, you are allowed to use Chapter 13 bankruptcy to fix the value of the loan to the value of the collateral, then pay off that lower amount over the course of the bankruptcy.
You cannot use the cramdown rule for recent purchases, and certain luxury purchases may not be accepted by the court.
If you’re worried about losing assets during bankruptcy, we can help.
Call the Queens bankruptcy specialists at Zelenitz, Shapiro & D’Agostino at 718-599-1111 and talk to a lawyer for free.