What are the types of debt restructuring?

Debt restructuring typically involves several types, including informal agreements, formal bankruptcy proceedings, and refinancing. Informal agreements can occur between creditors and debtors to modify payment terms without legal intervention. Formal bankruptcy proceedings, such as Chapter 11 in the U.S., involve court supervision to reorganize debts. Refinancing entails replacing existing debt with new loans under different terms, often to secure lower interest rates or extended payment periods.