Absolution by a creditor of a borrower's obligation to repay a loan.

This may be done with respect to personal, business, or national debt. It is usually done in recognition of the debtor's complete inability to repay the creditor, and therefore the impracticality of maintaining the expectation. Between nations this usually happens when one country is struggling with an economic crisis and would likely be unable to attain stability in the face of insurmountable debt. In terms of the individual, bank loan agreements often have provisions for debt cancellation in the case of financially devastating events such as death, disability, or loss of job.