Debt Reorganization

Debt reorganization is a process that allows individuals or businesses struggling with overwhelming debt to restructure their financial obligations. This typically involves negotiating new terms with creditors, such as reduced interest rates, extended payment periods, or debt forgiveness. The goal is to make payments more manageable, ultimately leading to financial recovery. This process can occur informally or through formal legal mechanisms, like bankruptcy. Debt reorganization aims to help the borrower regain financial stability while ensuring that creditors can gradually recover some of the owed amounts.