The restructuring is the last phase of the debt relief process. Prior to remediation, the stabilization and verification phases determined how high the total debt is and how much the (former) entrepreneur can pay off over the coming years. This period lasts 3 years for entrepreneurs who stop their businesses, and 5 years for entrepreneurs who continue their businesses. In this video, Jacqueline explains how this phase works.
As soon as the total debt and the redemption amount are clear, we will make a restructuring proposal against final discharge to the creditors. The proposal means that we can show the creditors that the proposed amount is the maximum amount that the (former) entrepreneur can repay. If the creditors accept this amount, the restructuring will start. At the end of the restructuring, the rest of the debt is canceled. For example: If you have a total debt of $ 100.000 and you can repay a total of $ 10.000 over the next 3 or 5 years, the remaining $ 90.000 will be canceled at the end of the cleanup.
Sometimes it is possible that not all creditors agree with the restructuring proposal. In this case, we have the option of submitting a request for a so-called compulsory agreement to submit. We then put the matter to the right requesting that creditors who have not agreed to the proposal be compelled to make an agreement.
If it is also not possible to reach an agreement with your creditors by means of a compulsory agreement, you have the option of entering into the legal debt settlement. The legal process follows: the Debt Rescheduling Natural Persons Act (WSNP). Here too we assist you with the petition to court.
Do you want to know more about the topic of debt restructuring? Look our video on debt restructuring.