Deed of Arrangement Law and Legal Definition

A deed of arrangement refers to a written agreement between a debtor and his/her creditors, in the absence of a bankruptcy order that arranges 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. Generally, a deed of arrangement is regulated by statute. A deed of arrangement can be in the form of 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/her debts.