Debt Extinguishment
/ˈdɛt ɪkˌstɪŋɡwɪʃmənt/
Definitions
- (n.) The act or process by which a debtor's obligation to repay a debt is legally discharged or canceled.
The debtor achieved debt extinguishment after fulfilling all payment terms.
- (n.) A legal event or transaction, such as payment, setoff, or release, that terminates a debt's enforceability.
Debt extinguishment occurred when the creditor accepted a settlement amount as full payment.
Forms
- debt extinguishment
- debt extinguishments
Related terms
See also
Commentary
Debt extinguishment should be clearly distinguished from debt restructuring; it denotes full discharge rather than modification of terms.
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.