Definition from Nolo’s Plain-English Law Dictionary
In Chapter 13 bankruptcy, a reduction in the amount of a secured debt the debtor must repay to the replacement value of the collateral securing the debt. For example, if a debtor owes $5,000 on a car that's worth only $3,500, a cramdown would reduce the amount of the debt that had to be repaid in Chapter 13 to $3,500.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:13 pm