Bankruptcy Reorganization

Bankruptcy reorganization is a legal process that allows a financially struggling business or individual to restructure their debts while keeping their assets. Instead of liquidating or shutting down, the debtor proposes a repayment plan, which can extend over several years, to pay creditors partially or fully. This plan must be approved by the court and often involves negotiations with creditors to reduce debt or extend payment terms. The goal is to help the debtor regain financial stability while ensuring creditors receive some repayment, ultimately allowing the business or individual to continue operating and preserve jobs.