__________is an arrangement initiated by the debtor firm to negotiate with the creditors about a plan for sustaining or liquidating the firm.
A) A filing under the Bankruptcy and Insolvency Act.
B) An involuntary reorganization.
C) An involuntary liquidation.
D) A voluntary settlement.

Question

Quizplus · Accepted Answer

A voluntary settlement is an arrangement initiated by the debtor firm to negotiate with the creditors about a plan for sustaining or liquidating the firm. It is a voluntary agreement between the debtor and the creditors, unlike an involuntary reorganization or liquidation where the decision is made by a court. A filing under the Bankruptcy and Insolvency Act may lead to a voluntary settlement or an involuntary reorganization/liquidation, but it does not specifically refer to a plan initiated by the debtor firm.

__________Is an Arrangement Initiated by the Debtor Firm to Negotiate