What is debt restructuring? When deferment of payment does not work and a payment arrangement is not even possible in the long term, you can think of debt restructuring. In a debt restructuring, we first look at your total debt and then at the situation of your company.
Your business is viable:
If, in addition to paying your ongoing business expenses and living expenses, you have money left over at the end of the month, chances are you have a viable business. This means you can continue with your business. We then calculate how much you can pay off your debt over a five-year period. For this calculation, we look at the monthly amount you have left after you have fulfilled your business and private obligations. This amount is your repayment capacity. The repayment capacity is the starting point for calculating how much you can repay over the next five years. For example: you have € 100.000 debt and you have € 1.000 left every month. Then you can save € 12.000 per year and repay € 60.000 over five years. With this € 60.000 we then buy off the debt from your creditors. Your repayment capacity is independent of your total debt. Suppose you have a debt of € 500.000 and a repayment capacity of € 60.000, this is the amount with which we buy off your debt from your creditors. Your creditors always get more than in a bankruptcy. In the event of a bankruptcy, you go into social assistance benefits and you will have much less money left to pay your creditors every month.
Your business is not viable:
If your company's income is too low to meet your fixed expenses and you don't have any repayment capacity left, then it's time to end the business. But even then debt restructuring is possible! In that case, your repayment capacity is calculated from your new income. This income can be a benefit or a salaried job. Here, too, it is calculated what your monthly fixed costs are and how much you have at the end of the month. Unlike a viable business, debt restructuring takes 3 years instead of 5 after ending a business. Suppose you have € 500 per month. Then this is € 6000 per year and € 18000 in three years. We will then present this amount to your creditors. Here too, your repayment capacity is independent of your total debt, and here too the creditors will get more than in a bankruptcy.
The examples we have mentioned here are examples of so-called amicable settlements. These are debt arrangements that you make directly with your creditors without a judge intervening. This means that the creditors agree to the payment proposal that we have presented to them as an independent intermediary. If your creditors do not agree to the payment proposal, you may be eligible for one statutory debt settlement (WSNP). Here too you can repay your debts within three years.