Abatement – briefly this term details a reduction in some amount which debtor owes towards creditors. The creditor who has to receive the debt, usually promises abatement to the debtor in case of quick cash payment.

In the area of Real Estate Law, for example, the term may refer more specifically to a situation where beneficiaries cannot share property identified in a personal will. This occurs because of this property has to go to public auction instead. Basically in order to pay off the existing debts, left by the decedent towards their creditors. In many jurisdictions, people have to pay any outstanding debts before they distribute gifts made in personal wills. So in a situation where you have to sell a specific asset to pay off a debt, you actually “abate”.

See also “abatement”
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