A more thorough explanation:

Definition: Beneficium competentiae is a Latin term used in Roman and Scots law that refers to a debtor's right to be ordered to pay only as much as they reasonably can. This ensures that after assigning their estate to creditors, the debtor has enough left to live on.

Example: If a debtor owes $10,000 to their creditors but can only afford to pay $5,000, they can claim beneficium competentiae. This means that they will only be ordered to pay the $5,000 they can afford, and the remaining debt will be written off.

This concept is important because it protects debtors from being forced to pay more than they can reasonably afford, while still ensuring that creditors receive some payment for the debt owed to them.