Scheme of arrangement – in Civil Law, when a debtor owes a debt and is facing an insolvency or bankruptcy, he can offer to his/her creditors a plan with options for repaying the debt. So in case, the creditor accepts it, the debtor will avoid the negative outcome of bankruptcy proceedings. This plan is known as a scheme of arrangement. Its role is to save the debtor from bankruptcy and to improve their credit ranking.
See also “absconding debtor”