Русско-англо-русский юридический словарь

Composition, in modern law, an agreement among the creditors of an insolvent debtor to accept an amount less than they are owed, in order to receive immediate payment. (Britannica)

Insolvency is not the same as bankruptcy. Insolvency is a state of economic distress, whereas bankruptcy is a court order that defines how an insolvent debtor will meet his or her obligations and/or have assets liquidated (sold) to pay the creditors. (Debt.org)

An insolvent estate is an estate in bankruptcy. When the owner of the estate passed,they left behind a greater amount of debt than equity. This means the estate must be sold off in order to repay debts, but there may still be outstanding debts to pay. Depending on the structure of the debts, the inheritors of the estate may be asked to repay the loans. (FinancialWeb)

In the United states, a general assignment or an assignment for the benefit of creditors is simply a contract whereby the insolvent entity ("Assignor") transfers legal and equitable title, as well as custody and control of its property, to a third party ("Assignee") in trust, to apply the proceeds of sale to the assignor's creditors in accord with priorities established by law. (PopFlock)