What is a reconciliation of debt?

Question

What is a reconciliation of debt?

Answer 1

it means if you owe someone like $5000, they may ask that you only pay $3500 so that you dont have to pay back the full amount and so at least they get some money.

Answer 2

Agree with above.

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Answer 3

basically when they settle with you to pay a lesser amount than what you actually owe

collection companies do this a lot to try to get something out of the lost revenue that you might not have paid otherwise.  some places usually settle for 10% off the actual debt.