A(n) ________ provides for the reduction of a debtor's debts.

Question

Quizplus · Accepted Answer

A composition is a legal agreement between a debtor and their creditors that provides for the reduction of the debtor's debts. This agreement typically includes a payment plan and a reduction in the total amount owed. Extensions refer to a lengthening of time for a payment, while liquidation refers to the sale of assets to pay off debts. Limitation is not a term used in this context.

A(n) ________ Provides for the Reduction of a Debtor's Debts