Definition - What does Cramdown mean?
Cramdown or cram down refers to the process where a court will involuntarily force a reorganization plan on to a person who owes money to other persons or entities.
The term received its name because it is a reorganization plan that the court "crams down" a person's throat and forces them to follow.
Justipedia explains Cramdown
The most frequent time when cramming down a loan occurs is during a Chapter 13 bankruptcy case that a person has filed. In this instance, any secured transaction that the individual made will be included in the cramdown process.
One example of a piece of property that would be subject to cramming, if they were behind payment, is a person's car. It should be noted that a person's primary residence is exempt from a cramdown.