Debt adjustment is a form of debt relief

Debt relief

Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations. From antiquity through the 19th century, it refers to domestic debts, in particular agricultural debts and freeing of debt slaves...

 that allows a government, organization, corporation, or individual to repay a debt

Debt

A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...

 over a longer period of time and with smaller payment amounts than the lender and borrower originally agreed upon. It is an alternative to bankruptcy

Bankruptcy

Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....

. Debt settlement

Debt settlement

Debt settlement, also known as debt arbitration, debt negotiation or credit settlement, is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full....

is a form of individual debt adjustment.

In the United States, law firms point out that Chapter 13 Individual Debt Adjustment is much less expensive and complicated than Chapter 11 Reorganization.

External links

• Individual Debt Adjustment in the US, per Findlaw and US Courts legal websites
• Debt adjustment in Finland
• Stress & Anxiety From Debt Can Be Reduced