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A court-ordered reduction in the periodic payments on the balance of a debt, usually in line with a lower interest rate, sometimes granted to bankrupt debtors.

[So called because it is crammed down, or imposed involuntarily, on the creditor.]
References in periodicals archive ?
Some argued that the government should either force them to do so as a condition of receiving bailout money or else allow judges to impose cramdowns of mortgages in bankruptcy (in most bankruptcies home mortgages remain exempt from restructuring).
Chapter 13 cramdowns, as applicable to Chapter 7 debtors as well.
Sanctity of contract may seem like a quaint notion in the age of the GM bailout and government-mandated mortgage cramdowns.
That solution is mortgage cramdowns where courts, either in bankruptcy or in foreclosure actions, reduce the principal balance of borrowers' loans to make them affordable.
184) Allowing cramdowns of mortgages may enable bankruptcy judges to revise the terms of a debtor's mortgage (185) and give borrowers leverage to induce modification in lieu of bankruptcy.
MBA also strongly favored the House's action to vote down an amendment that would have approved bankruptcy cramdowns.
Mortgage cramdowns is another area that could come up in the CFPA discussions on the Hill.
Three of our six reported cramdowns were enforced against creditors.
Whether you are dealing with clawback provisions or next round financing, cramdowns or the overhang problem, this definitive book brings you the in-depth, nuanced answers you need to achieve your objectives.
73) The right to rent plan, therefore, rests somewhere between existing government programs that reward voluntary renegotiation (74) and mortgage cramdowns, which result in involuntary renegotiation of mortgage terms.
The CEO of one of the largest state leagues sent out a pitifully frantic letter stating that cramdowns would apply to all mortgages.