Ans. Through debt restructuring, you can directly negotiate with the creditors for better terms to your existing loan. However, bankruptcy means a distressed entity facing financial difficulties can delay payments to lenders through a legally enforced gap. Once a company declares bankruptcy, it can work with the court and its lenders to identify a suitable repayment plan. In case the company is still not able to repay the loans, they could liquidate their assets to meet their debt obligation.