SURSEANCE Meaning and
Definition
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Surseance is a legal term that refers to a temporary cessation or suspension of certain legal actions, particularly those related to debt or financial obligations. It is often used in the context of bankruptcy or insolvency proceedings, where a company or individual seeks temporary relief from creditors to reorganize their finances and try to avoid further financial distress.
When a party declares surseance, it essentially means that they are putting a halt to any actions that may be taken against them by their creditors, such as the collection of debts or the initiation of lawsuits. This allows the debtor some breathing space to negotiate with their creditors and present a plan for debt restructuring or repayment.
During the surseance period, a legal framework is established to protect the debtor and ensure fair treatment of all parties involved. This may include a moratorium on the enforcement of claims, appointments of supervisors or administrators to oversee the process, and the creation of a detailed proposal for resolving the debtor's financial difficulties.
Surseance is generally seen as a tool that provides a chance for companies or individuals facing financial difficulties to regroup and recover. However, it is crucial to note that it is a temporary solution and the long-term success of the debt restructuring or repayment plan depends on the viability and implementation of the proposed measures.
Common Misspellings for SURSEANCE
Etymology of SURSEANCE
The word "surseance" has its origins in French. It is derived from the French term "surséance de paiement", which can be loosely translated as "suspension of payment". In French, "sur" means "over" or "above", and "séance" means "session" or "sitting". Therefore, "surséance de paiement" denotes a legal procedure where a company or individual can be granted temporary relief from the obligation of paying its debts. The word "surseance" has been adopted into English legal terminology to refer to the same concept.
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