Which of the following term describes the process in bankruptcy designed to allow businesses that are in temporary financial distress but are worth saving to continue operating while the claims of creditors are settled using a collective procedure?

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Reorganization is the term used in bankruptcy to describe the process of allowing businesses in temporary financial distress to continue operating while their debts are restructured and settled with creditors. This process is also known as Chapter 11 bankruptcy, where a business proposes a plan to reorganize its debt and operations to become profitable again.

Which of the Following Term Describes the Process in Bankruptcy