Debt Arrangement
/ˈdɛt əˌreɪndʒmənt/
Definitions
- (n.) A legally binding agreement between a debtor and creditors to restructure or repay debts under specific terms.
The company entered a debt arrangement to avoid bankruptcy and satisfy its creditors over time.
- (n.) A formal process, often court-supervised, allowing a debtor to manage debt repayments while protected from enforcement actions.
Under the debt arrangement scheme, the individual made monthly payments without facing creditor pressure.
Forms
- debt arrangements
Related terms
See also
Commentary
Debt arrangements vary by jurisdiction; clarity in specifying whether a court-supervised or private restructuring is intended helps avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.