Legal finance clause - Does a debt collection count as a compromise with creditors?

Question

Could someone explain what these two questions are asking? And if one had a medical bill debt that was sent to collection and negotiated down, would that cause either to be answered in the affirmative?

Within the past 10 years:

1. Have you made a compromise with creditors, filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition?

2. based upon events that occurred while you exercised control over it, has an organization made a compromise with creditors,

filed a bankruptcy petition or been the subject of an involuntary bankruptcy?

Answer 1

And you would also be given space to explain.  You would answer yes.  Medical bills are usually not held against you for obtaining credit, unless you lack positive report items on your credit report. (i.e. "Pays as agreed" on open credit lines).

Answer 2

I would construe as asking about formal compromises, approved by a court.  I would not construe that question as applying to negotiations that never make it to court.  However, it depends on the context in which it is asked.