Puerto Rico may be nearing the end of bankruptcy. What does this mean?

Last month, a federal judge approved the largest debt restructuring plan ever reported in the United States, paving the way to end Puerto Rico's long and painful bankruptcy process.

The plan -- capping a years-long debate between creditors and local and federal officials --- reduces the largest part of the island’s largest outstanding debt portion from $33 billion to about $7 billion. Debt originally amounted to $70 billion plus $50 billion in pension obligations.

Puerto Rico’s Electric Power Authority separately owes more than $9 billion. The financial oversight board responsible for extricating the island from bankruptcy expects to have a plan for that debt later this year.

Last week, the longtime executive director of the board, Natalie Jaresko, who helped negotiate the plan, announced her resignation effective in April. She and the board have faced criticism for the length of time it took to negotiate the plan as well as austerity measures imposed in the meantime, but they lauded the deal as a historic step for Puerto Rico's future.