Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

creditors' composition

Read a random definition: connecting-up doctrine

A quick definition of creditors' composition:

Creditors' composition is an agreement between a person who owes money (a debtor) and two or more people they owe money to (creditors). The agreement is that the debtor will pay the creditors less than what they owe in order to settle the debt. This is called a composition. The creditors agree to this because they would rather get some of their money back than none at all. Once the agreement is completed, the debtor is no longer responsible for the full amount owed to the participating creditors. This type of agreement is different from the preexisting-duty rule, which says that a person cannot get out of a debt by promising to do something they were already obligated to do. In a creditors' composition, each creditor agrees to take less than what they are owed, so there is new consideration for the agreement. In the past, a composition could also mean paying someone money or goods to make up for harm done to them, but this is not the common meaning today.

A more thorough explanation:

Creditors' composition is an agreement between a debtor (someone who owes money) and two or more creditors (people or companies who are owed money) to adjust or discharge an obligation for a lesser amount. This means that the debtor will pay the creditors less than what they are owed, but in full satisfaction of their claims.

For example, if a debtor owes $10,000 to two creditors, they may agree to pay each creditor $5,000 instead of the full amount owed. Through this agreement, the debtor is discharged (released) from their debts to the participating creditors.

This type of agreement is different from the preexisting-duty rule, which means that a debtor cannot use an agreement to pay less than what they owe if they already had a legal obligation to pay the full amount. However, in a creditors' composition, each creditor agrees to take less than full payment, so consideration (something of value) arises from the agreement.

Historically, a composition with the injured party was recognized as a way to deter acts of revenge by the injured party. For example, in Anglo-Saxon societies, a person who caused an injury could pay a composition (a payment of money or chattels) to the injured party as satisfaction for the injury, instead of facing revenge or punishment.

creditors' committee | creditors' meeting

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
babycat
20:34
you should meet the urbit guys. they have thielbux I think
damn, i was impatient to hear back from my jobs so i was just gonna work retail but idk if admissions is high brow about that
m10
20:35
@babycat: I may have already met them. I met urbit people like 3-4 years ago. It's just hard to do their stuff.
m10
20:35
Ahh any work is good work to admissions usually.
babycat
20:36
yeah I thought she meant like a year before she applied. if you already applied it doesn’t matter all that much
m10
20:36
Personally, I have only helped launch two coins but my friends want to launch a third. Bigegst project is probably disco solaris: https://www.jpg.store/collection/moebiuspioneersdressed
ohh yeah i mean right now cuz im still waiting and i dont like being unemployed but i dont know if theyd be like she works at aerie not a finance firm ew
m10
20:37
And then, the sexy naked ones hehehehe: https://www.jpg.store/collection/moebiuspioneersnakeddiscos
babycat
20:37
@m10: I don’t like that they’re all tied to pictures of people
i also think getting a job faster will help with going crazy over admissions even if its not as "fancy"
m10
20:38
All of what? That's like the only NFT project I worked on that was moderately good @babycat
@m10: thats so cool
JumpySubsequentDolphin
20:41
hi SPLITTY I think you should get a job at aerie for the discount
babycat
20:41
what if I just want to purchase the value without owning a lady with x tape on her boobies?
m10
20:42
Get the ones that are dressed up then!
@JumpySubsequentDolphin: LITERALLY I also just applied to work at garage cuz 50% EMPLOYEE DISCOUNT
m10
20:43
Or legacy collection v1
JumpySubsequentDolphin
20:43
@SplitterusClitterus: GARAGE JEANS FIT ME SO WEIRDLY WHICH SUCKS BC THEYRE SO CUTE
m10
20:43
The cool thing about V2 was it was an infinitely generating collection so they would have never sold out but they ended it early cus of the bear market.
@JumpySubsequentDolphin: NAURRR i need to try them on to see. ive never owned anything from them exceot maybe a tank in middle school?? but ive been a longtime lurker/windowshopper/fan
JumpySubsequentDolphin
20:45
SPLITTY if their jeans fit on my thighs they’re too big on my waist!!! it’s so frustrating
NOOO THEIR WHITE GIRL JEANS actually idk why im surprised
THEYRE**** THAT WAS AUTOCORREXT I SWEAR
babycat
20:46
@m10: infinitely generating means it comes up with new pictures? or new copies of the same pictures?
JumpySubsequentDolphin
20:46
if you’re the slightest bit curvy they are so obnoxious. me and my Abercrombie curve love’s are good together
SHUT UP I LOVE ABERCROMBIE JEANS
m10
20:47
Did y'all see this from ararara last night? https://studicata.com/case-briefs/all/
THOSE FIT SOO GOOD. i desperately need new jeans tho i ahvent gone shopping in millennia so a discount would come in clutch
LSD+ is ad-free, with DMs, discounts, case briefs & more.