setoff

Definition

The claim a debtor can make against a creditor that reduces or cancels the amount the debtor owes.

Use setoff in a sentence

The man attempted to claim a setoff against some of his creditors, but it was denied and he was forced to pay back what he owed anyways.

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If you're willing to give the creditor an equity stake in your business, they are willing to provide you with a setoff for your remaining debt.

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When he was able to show that the credit card company had illegally imposed fees on his account, he was able to get a setoff of $1000 subtracted from the $20,000 that he owed.

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