[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-321165-105":59,"doc-detail-321165-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","stripdowns-and-bankruptcy-lessons-from-agricultural-bankruptcy-reform","Stripdowns and Bankruptcy - Lessons from Agricultural Bankruptcy Reform","","Explores how bankruptcy courts might gain authority to modify residential mortgages through stripdowns to current market value, focusing on the policy debate after the housing crisis. Weighs proponents’ foreclosure-mitigation and equity arguments against opponents’ concerns about higher interest rates, less affordable homeownership for low- and moderate-income families, court overload, and fairness in shifting losses from borrowers to lenders. Highlights limited empirical evidence and the value of studying prior Chapter 12 outcomes from the 1980s farm lending crisis.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/stripdowns-and-bankruptcy-lessons-from-agricultural-bankruptcy-reform/321165/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/stripdowns-and-bankruptcy-lessons-from-agricultural-bankruptcy-reform/321165.png","ImageObject",300,407,{"name":92,"@type":93},"Ivy","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-04","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":44},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What is a mortgage stripdown or loan cramdown in this debate?","Question",{"text":112,"@type":113},"It is a modification under which a judge reduces the balance of the secured claim to the home’s current market value, turning the remainder into an unsecured claim with proportional treatment alongside other unsecured debts.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Why do some opponents argue stripdowns could worsen outcomes for borrowers?",{"text":117,"@type":113},"They contend stripdowns may increase mortgage interest rates and reduce affordability and accessibility of homeownership, especially for low- and moderate-income families, and they may trigger many additional Chapter 13 filings that overwhelm courts.",{"name":119,"@type":110,"acceptedAnswer":120},"How does the document use the 1980s farm foreclosure crisis to inform the current Chapter 13 discussion?",{"text":121,"@type":113},"It notes that Congress previously responded to the farm foreclosure crisis by creating Chapter 12 with stripdown authority. Examining Chapter 12’s effects is presented as informative for evaluating the efficacy of granting similar authority under Chapter 13.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},321165,1790164352,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":44,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},549758252649,"https://ap-avatar.wpscdn.com/avatar/8000253669c5317157?_k=1778319167496531819","# Stripdowns and Bankruptcy:Lessonsfrom Agricultural Bankruptcy Reform\n\nThomas J.Fitzpatrick IV and fames B.Thomson  \nOne type of financial reform being proposed to deal with the aftermath of the housing crisis is allowing bankruptcyjudges the authority to modify residential mortgages in a way referred to as a stripdown.The reformis seen by some asa partial solution to the rise in foreclosures and as a Pandora's box by others.But the debate is not new one.The 1980sfarm foreclosure crisis sparked similar proposals and concerns.Congress decided to enact legislation that containedastripdown provision,resulting in the creation of Chapter 12in the bankruptcy code.The effects of Chapter 12 stripdownauthority after its enactment shed light on the efficacy of granting bankruptcy judges similar authority for housing loans.  \nThe real estate boom and bust of the past decade have pro-duced the biggest housing finance calamity since the GreatDepression.Four years after the onset of the foreclosurecrisis,mortgage default and foreclosure rates remain nearhistoric levels.Distress in the housing sector has persisteddespite a cavalcade of proposals and programs aimed atstemming the tide of foreclosures.  \nAmong these proposals is one to revise Chapter 13 of thebankruptcy code to allow judges to modify mortgages on pri-mary residences.The type of loan modification under con-sideration is known as a loan cramdown or loan stripdownbecause the judge would reduce the balance of the securedclaim to the current market value of the house,turning theremaining balance of the mortgage into an unsecured claim(which would receive the same proportionate payout as otherunsecured debts included in the bankruptcy petition).  \nNaturally,any proposal that promises to change the rightsof creditors or borrowers is likely to engender a lively,sometimes fierce debate.Bankruptcy stripdowns of mort-gages secured by primary residences are no exception.  \nMany proponents of this reform see it as a partial solu-tion to the foreclosure crisis,arguing that it will reduce thenumber of homes going into foreclosure by increasing thenumber of sustainable loan modifications.Some advocatesdo not see it as the magic bullet for the foreclosure crisis,but rather base their case on equity grounds.They pointout that just about every other type of secured loan can bestripped down in Chapter 13,including mortgages on rentalproperties and vacation homes.  \nNumber 2010-9  \nAugust 3,2010  \nOpponents of the reform have advanced several reasonsfor continuing to prevent stripdowns of primary residencesin bankruptcy.One of the most commonly mentioned isthe possibility that stripdowns would lead to an increase inmortgage interest rates.They argue that an unintended con-sequence of mortgage loan modifications under Chapter 13might be to make homeownership less affordable and,moreimportantly,less accessible to low-and moderate-incomefamilies.  \nOpponents also fear that making this change to the bank-ruptcy code during the current financial crisis could promptan avalanche of Chapter 13 bankruptcy petitions,whichcould overwhelm the courts.  \nFinally,many banks and other lenders have expressed con-cern that allowing bankruptcy stripdowns would shift lossesfrom borrowers to lenders and give bankruptcy judges toomuch discretion when rewriting the terms of the debt.Anysuch loss shifting raises issues of fairness with respect to thisreform,as it would be changing the rules governing primaryresidence loans after the terms had been established andagreed upon.  \nThe debate on the impact of bankruptcy stripdowns onthe cost and availability of mortgage credit is hamperedby a lack of empirical evidence-reflccting in large part thescarcity of available data.The limited empirical evidenceon Chapter 13 stripdowns of primary mortgages does notsupport the concerns of opponents(see for example,a recentstudy by Adam Levitin and Joshua Goodman).However,aswith any single empirical study,one must be cautious aboutover","cbCainZxM0z9t1bf","https://ap.wps.com/l/cbCainZxM0z9t1bf","pdf",1453626,"English","# The Agricultural Lending Crisis\n## Stripdowns and Bankruptcy Debate\n## Proposals for Chapter 13 Mortgage Modifications\n## Opponents' Concerns and Empirical Evidence\n## Lessons from the 1980s Chapter 12 Experience","[{\"question\":\"What is a mortgage stripdown or loan cramdown in this debate?\",\"answer\":\"It is a modification under which a judge reduces the balance of the secured claim to the home’s current market value, turning the remainder into an unsecured claim with proportional treatment alongside other unsecured debts.\"},{\"question\":\"Why do some opponents argue stripdowns could worsen outcomes for borrowers?\",\"answer\":\"They contend stripdowns may increase mortgage interest rates and reduce affordability and accessibility of homeownership, especially for low- and moderate-income families, and they may trigger many additional Chapter 13 filings that overwhelm courts.\"},{\"question\":\"How does the document use the 1980s farm foreclosure crisis to inform the current Chapter 13 discussion?\",\"answer\":\"It notes that Congress previously responded to the farm foreclosure crisis by creating Chapter 12 with stripdown authority. Examining Chapter 12’s effects is presented as informative for evaluating the efficacy of granting similar authority under Chapter 13.\"}]","Stripdowns and Bankruptcy - Lessons from Agricultural Bankruptcy Reform | PDF",1789958585,13]