Deed of Arrangement in United Kingdom

Definition of Deed of Arrangement

In accordance with the work A Dictionary of Law, this is a description of Deed of Arrangement : A written agreement between a debtor and his creditors, when no *bankruptcy order has been made, arranging the debtor’s affairs either for the benefit of the creditors generally or, when the debtor is insolvent, for the benefit of at least three of the creditors. A deed of arrangement is regulated by statute and must be registered with the Department of Trade and Industry within seven days. It may take a number of different forms: it may be a *composition, an *assignment of the debtor’s property to a trustee for the benefit of his creditors, or an agreement to wind up the debtor’s business in such a way as to pay his debts. The debtor usually agrees to such an arrangement in order to avoid bankruptcy. A similar arrangement can be agreed after a bankruptcy order is made, but this is regulated in a different way (See voluntary arrangement).