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Troubled Debt Restructuring

[TRUH-buhld det ree-STRUK-chuhr-ing]

What is the definition of Troubled Debt Restructuring?
An agreement between a debtor and creditor that modifies the terms of a debt that is unlikely to be repaid under the original terms. The restructuring may include alterations to payment schedules, interest rates, or the transfer of assets as partial or full settlement of the debt.
Using Troubled Debt Restructuring in an Example

In a troubled debt restructuring scenario, a company struggling to meet its loan obligations may negotiate with its lender to reduce the interest rate or extend the payment period. Additionally, the company might agree to transfer ownership of certain assets to the creditor as part of the debt repayment.

Using Troubled Debt Restructuring in a sentence

The finance team is currently negotiating a troubled debt restructuring plan with the bank to avoid defaulting on our loans.

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A charge levied by a governmental unit on income, consumption, wealth, or other basis to fund public services and governmental activities.
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Tax Court

The U.S. Tax Court is a federal court that specializes in handling disputes between taxpayers and the Internal Revenue Service (IRS) related to the assessment of income, gift, estate, certain excise taxes, and other tax-related issues. It does not have jurisdiction over matters such as employment taxes or certain other types of taxes.
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Tenancy-in-Common

A form of co-ownership where each owner holds an undivided interest in property, and upon death, their share passes to their heirs or beneficiaries rather than to the other co-owners.
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