Debt Relief
Q. What is voluntary debt arrangement and how does it differ from bankruptcy?
A.
Voluntary arrangement cuts future interest and restructures repayment without court, and you keep your assets.
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Voluntary arrangement negotiates directly with creditors without court (based on freedom of contract, Art. 521). Typically eliminates future interest and extends repayment to 3-5 years. Unlike bankruptcy, assets are preserved and debts are reduced but not discharged.
This article provides general legal information and does not constitute legal advice. For specific legal issues, please consult with a qualified attorney.
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