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Voluntary arrangements can provide a quick and flexible way of alleviating financial strain. This procedure is often used when an insolvent company only has minor payment problems and the number of creditors is limited. No statutory law applies to this procedure. In most cases the debtor declares a suspension of payments and uses the time to negotiate a voluntary composition. As this is a voluntary solution, each creditor must agree to it, whether actively or passively (ie, by not filing for bankruptcy). A company which is likely to pay its debts in the future, but which needs to solve immediate ...
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