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Government Relations

November 2009

Trade-in Value and Auto Loans After Bankruptcy Reform: Part One

Reprinted with permission from the November 2009 edition of the Law Journal Newsletters. © 2009 ALM Media Properties, LLC. All rights reserved.

In 2005, when Congress enacted PL 109-8, significant changes were in store for the automobile finance industry. Under the prior law, automobile financiers faced the prospect of cram-down or lien stripping, whereby a portion of the amount due on an automobile sales contract could be bifurcated and then treated as unsecured.

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