agreement designed to allow a debtor to continue to operate. It includes a voluntary reduction of the amount the debtor owes the creditor. The creditor obtains from the debtor a stated percent of the obligation in full settlement of the debt regardless of how low the percentage is. The advantages of a composition are that court costs are eliminated as well as the stigma of a bankrupt company.
agreement between an insolvent debtor and his creditors, whereby the creditors accept less than the full value of their claims. Considered an expedient alternative to bankruptcy, composition plans are most often agreed to in small, unincorporated businesses rather than larger firms. Creditors are inclined to accept partial repayment in the belief that an operating business is better than one that liquidates to pay off its creditors. Compare wage earner plan.
arrangement of type and/or art for printing. Composition may be a manual or computerized process. It includes all aspects of letter, word, and line spacing; line justification; indentation; hyphenation; type selection; and arrangement of all image elements on the page.
