________ is an arrangement initiated by the debtor firm to negotiate with the creditors about a plan for sustaining or liquidating the firm.

Question

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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. This is different from an involuntary reorganization or an involuntary liquidation, which are initiated by creditors or the court. Chapter Seven of the Bankruptcy Reform Act of 1978 refers to a specific chapter in the bankruptcy code, which outlines the process for liquidation of assets to pay off creditors.

________ Is an Arrangement Initiated by the Debtor Firm to Negotiate