rehabilitation legal definition

A restoration of reputation and character, the term has many context-sensitive meanings. In penology, it is the process of improving the inmateÂ’s character so he will become a productive member of society. At a trial, it is the restoration of a witnessÂ’s credibility after it has been impeached under cross examination. In the context of bankruptcy, it is restoring a corporationÂ’s solvency by satisfying the creditorsÂ’ claims with future earnings, so that the corporation may continue to do business. See also mitigating circumstance.