What is bankruptcy restructuring?

Bankruptcy restructuring is the process by which companies or individuals reorganize their financial affairs when they are unable to meet their debt obligations. This typically involves negotiations with creditors to modify the terms of debt, such as reducing the amount owed, extending repayment periods, or converting debt into equity. The goal is to help the debtor regain financial stability while ensuring fair treatment for creditors. Bankruptcy restructuring can occur within or outside of formal bankruptcy proceedings, depending on the situation and jurisdiction.