Debt restructuring - Tidy is neat ?!
Last year I ran into my old kindergarten teacher, and since I've already seen Sara, she rightly asked me, "Jacqueline, do you remember me?" Yes, Miss Jannie! ”. Infancy was a wonderful time for me. And the funny thing is that especially sweeping the tiles around the sandbox has stayed with me, tidying up and cleaning. Well, you might not look for it 1,2,3 behind me, but I can still put quite a bit of energy into that. Therefore, it may not be a coincidence that debt restructuring came my way after college and I started my business in it 22 years ago. After all, restructuring literally means making healthy, and that is the basis of every debt restructuring. You make the financial basis clean and healthy again. And how do you do that?
First of all, there must be a problematic debt situation, in other words: debts can no longer be repaid normally because of insufficient income and assets for this purpose in the near future. And then? The guiding principle here is that the misery of the past is regulated from the possibilities in the future.
When I used to have intake interviews with our customers, I always asked the question: What if you wake up tomorrow? What are you going to do, what do you want to do? In other words, do you continue with your company and are you able to pay your fixed business expenses, provide for your living and do you still have repayment capacity? If so, you may have a viability business.
Then you first put out any fires, optimize income and stabilize the financial situation. After the debt position has been determined (easier said than done with an average of 18 creditors per entrepreneur and a tax debt that often consists of ex-officio assessments or where declarations still have to be made), you can start with the debt restructuring.
The repayment capacity that is available over the next 5 years is roughly the starting point for the debt restructuring of entrepreneurs who continue. This is 3 years for entrepreneurs who quit and are employed or fall back on social assistance benefits. You then buy off the debts with that repayment capacity. For example, if you have 200.000 euros in debt and 40.000 euros in repayment capacity, we buy off the debt of 40.000 with those 200.000. Roughly an offer of 20% against final discharge of the residual debt. Sure, the practice is a bit more complex with creditors' priority positions, different VAT percentages, possibly varying future income and refusing creditors, but it does give 1e impression in our world of debt restructuring.
And after having been able to assist about 36.000 entrepreneurs and former entrepreneurs in the solution to their debts, whereby creditors always get more than without the use of debt restructuring and entrepreneurs can continue to provide for their own income, I would like to publicize this nice amicable solution. Go broom through those problematic debts !!
jacqueline