Meaning of “voluntary arrangement” in the English Dictionary

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"voluntary arrangement" in Business English

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voluntary arrangementnoun [ C ]

uk us 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 enter into a voluntary arrangement with your creditors.
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(Definition of “voluntary arrangement” from the Cambridge Business English Dictionary © Cambridge University Press)