debt relief

This is the reorganization of debt to provide the indebted party with some leeway. If a massive debt load makes it difficult to service borrowings, creditors may be open to restructuring the debt and providing relief rather than risk the borrower defaulting on its obligations. Debt relief can come in various forms such as wiping the debt out altogether in bankruptcy; getting changes in the interest rate or payment schedule; or persuading creditors to agree to accept less than the full amount owed.