Debt Forgiveness Law and Legal Definition
(A) In general, the term "debt forgiveness" is defined as “reducing or terminating a farmer program loan made or guaranteed under this title, in a manner that results in a loss to the Secretary, through--
(i) writing down or writing off a loan under section 353 [7 USCS § 2001];
(ii) compromising, adjusting, reducing, or charging-off a debt or claim under section 331 [7 USCS § 1981];
(iii) paying a loss on a guaranteed loan under section 357 [7 USCS § 2005]; or
(iv) discharging a debt as a result of bankruptcy.
(B) Exceptions - The term "debt forgiveness" does not include--
(i) consolidation, rescheduling, reamortization, or deferral of a loan; or
(ii) any write-down provided as part of a resolution of a discrimination complaint against the Secretary.” (7 USCS § 1991)
