arrangement with creditors


arrangement with creditors
A plan of a debtor for the settlement, satisfaction, or extension of the time of payment of his debts. Chapter 11 of the federal Bankruptcy Code provides for a device whereby, under the protection and supervision of the court, a financially troubled business may work out an agreement with its creditors under a reorganization plan permitting it to stay in business, rather than going bankrupt. Arrangements of individual debtors with their creditors are provided for under Chapter 13 of the Code.
composition with creditors

Black's law dictionary. . 1990.

Look at other dictionaries:

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  • voluntary arrangement — A procedure provided for by the Insolvency Act (1986), in which a company may come to an arrangement with its creditors to pay off its debts and to manage its affairs so that it resolves its financial difficulties. This arrangement may be… …   Accounting dictionary

  • voluntary arrangement — A procedure provided for by the Insolvency Act (1986), in which a company may come to an arrangement with its creditors to pay off its debts and to manage its affairs so that it resolves its financial difficulties. This arrangement may be… …   Big dictionary of business and management

  • voluntary arrangement — UK US noun [C] FINANCE, LAW ► in the UK, an agreement between a person or company that owes money and is in financial difficulty and their creditors. This allows them to avoid being made officially bankrupt: »One way of reducing repayments is to… …   Financial and business terms

  • individual voluntary arrangement — noun A formal alternative to bankruptcy involving a flexible contract with creditors …   Wiktionary

  • Fast Track Voluntary Arrangement — A Fast Track Voluntary Arrangement (FTVA), in the United Kingdom, is a binding agreement with a debtors creditors to pay all or part of the money owed to them. A debtor can only enter into it after they have been made bankrupt. In an FTVA the… …   Wikipedia


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