Jason is a small-business owner. He has a dry-cleaning business. One year, Jason has to replace nearly all of his equipment, and the rent on his building increases. Jason borrows money to cover his expenses. Business is slow, however, and Jason eventually realizes he must declare bankruptcy. Neither Jason nor his creditor wants the expense and hassle of going to court. They can settle their creditor-debtor relations outside of court through a:

a. revisionary loan.
b. Chapter 13 reorganization.
c. petition.
d. workout.

When a party is involved in debt that will require another party suing him to court but the parties do not like the idea, they can settle their relations outside of a court through a workout.

Workouts are voluntary reorganization plans arranged between creditors and generally companies experiencing temporary financial difficulties. Workouts typically require some restructuring of the firm's debt where they come to an agreement of other means they would use to clear the debts.

akposevictor akposevictor · Answer 2 · 2020-03-31T03:01:55+02:00

Answer:

d. workout

Explanation:

A workout is an out-of-court restructuring that involves the entering into agreement between a borrower and a lender in order to restructure debt repayment or renegotiate the terms of of a loan, that is due already for repayment.

As stated in the case of Jason, whose company is financially troubled and has failed to pay his debts, he can settle with his creditor outside of could through the nonjudicial process called a workout. Both renegotiate and come up with another schedule of how the loan can be repayed.