voluntary arrangement



Agreement between an insolvent or financially-strapped debtor entity and its creditors, aimed at avoiding the liquidation of its assets. Under a voluntary arrangement, the entity continues its normal existence and pays off its debts over an agreed upon period, without or without any court-issued administration order.

Use this term in a sentence

Related Videos


Have a question about this term? Ask for help in the
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z