Instead of cram downs and/or debt forgiveness just issue an additional $5000 to the $1000/mo. universal dividend distributed by the National Credit Office and earmark it (the $5000) to mandatory debt repayment until one is no longer indebted or for 20 months thus making it a $100,000 debt jubilee.
The National Credit Office (NCO) must be the actual and final creator and distributor of all new credit/money. The fee for service that banks will then charge as their being integrally within the economic process that ends at retail sale will be their determination of creditability, market saturation, business plan for a loan etc. However, the actual responsibility for the creation and disbursing of the credit will be entirely with the NCO who will consider all factors considered by the banks in their underwriting process before final disbursement. Likewise, with any bond issuance/financing of savings the NCO will rigorously examine for money laundering and any other illegal possibilities.
Most taxation will be eliminated or severely reduced in the new paradigm, but it will still be there within a new ethical framework that encourages economic virtues with monetary rewards and discourages economic vices with taxation. Examples would be taxation for various economic rents, for inauthentic/fallacious cost/price inflation by enterprise and as an inducement to philanthropy additional gifting by the NCO for causes deemed virtuous by them.