Accountants are faced with the prospect of preparing financial statements for debt restructurings on a regular basis. Some of the restructurings are handled under the realm of the U.S. Bankruptcy Court; others are done on a private basis outside of court jurisdiction. Why does a company want to settle their debt restructuring problems outside the U.S. Bankruptcy Court. And, what role does the accountant play during a restructuring? What are some of the accounting statements an accountant may need to prepare for a company in court, either under section 7 or 11 of the Bankruptcy Act?