Better-fortune clause: what is it for?
Debt relief, restructuring and financial recovery: how a better-fortune clause works and what needs careful drafting.
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Better-fortune clause: what is it for?
Updated March 2026 - This clause allows immediate relief while preserving a return mechanism if the debtor later improves financially.
See also debt collection, financial valuation and withdrawal of pre-emptive rights.
Main point
Its usefulness depends on precise trigger criteria.
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Conclusion
Good drafting is what makes this clause useful rather than contentious.
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Article written by Samuel HAYOT
Chartered Accountant, registered with the Institute of Chartered Accountants.
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