The debtor firm often initiates the voluntary settlement process, because it generally offers the best chance for the current owners to recover a portion of their investments either by continuing to operate the firm or through a planned liquidation of the firm.

Question

Quizplus · Accepted Answer

The statement is true. A voluntary settlement process initiated by the debtor firm provides an opportunity for the current owners to recover a portion of their investments either by continuing to operate the firm or through a planned liquidation of the firm.

The Debtor Firm Often Initiates the Voluntary Settlement Process, Because