Reorganized Debtor

A reorganized debtor refers to a business or individual that has gone through a bankruptcy process, typically Chapter 11, and successfully created a plan to meet their financial obligations while continuing operations. This plan often involves restructuring debts, negotiating with creditors, and making changes to improve the business's financial stability. Once the court approves this plan, the debtor can emerge from bankruptcy, often with a fresh start, allowing them to operate more sustainably while paying off their debts over time.