"Debt reorganization" refers to a process where a person or organization that owes money works with their creditors to come up with a new plan to repay the debt. This could involve renegotiating the terms of the loan, extending the repayment period, reducing interest rates or even forgiving a portion of the debt. The aim is to make the debt more manageable for the debtor, allowing them to avoid bankruptcy and eventually pay off what they owe.
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