Sandy incurred a massive debt in medical expenses owed to a local hospital. She simply did not have the assets or income to pay the bill. Therefore, she contacted the hospital and requested a reduction in the bill, a payment plan and the opportunity to work off part of the bill by working at the hospital cafeteria. The hospital agreed. This is an example of a(n)

Question

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A workout involves a debtor and creditor coming to an informal agreement on how a debt will be repaid, often including negotiations for reduced payments or alternative compensation methods, as seen in Sandy's situation with the hospital.

Sandy Incurred a Massive Debt in Medical Expenses Owed to a Local