Debt Forgiveness
/ˈdɛt fərˌgɪvnəs/
Definitions
- (n.) The voluntary act of a lender canceling all or part of a borrower's debt, releasing the borrower from the obligation to repay.
The debtor sought debt forgiveness to recover financially after losing his job.
Related terms
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Commentary
Debt forgiveness is often formalized in legal agreements and may have tax consequences; precise terms should be clearly defined to avoid disputes.
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.