Debt forgiveness

The forgiveness of a debt is the voluntary abandonment by a creditor of their right to demand payment of the receivable by the debtor.

By proposing the debt’s forgiveness, the creditor releases the debtor from their repayment obligation. The debt may be written off either in whole or in part.

Debt forgiveness should not be confused with debt forgiveness with release, as the former requires the agreement of both parties, whereas release only requires the will of the creditor.

Updated 04/06/2018

Definitions provided under this section refer to the Belgian situation; unless specified otherwise. The texts are meant to summarize concepts in daily language and should not be considered as comprehensive or definite. We welcome suggestions for modifications or additions at glossary@tcm.be.