Debt Restructuring for the Consumer

Often those who have contracted many debts are in great difficulty to pay them off. When the debt amounts are significantly higher than the debtor’s finances, it may be appropriate to make an agreement with the creditors. On the basis of a debt restructuring plan, in fact, it is possible to divide your assets among the various creditors. In this way, even if the debt is paid only partially, the creditors will not be able to claim anything else.

The debt restructuring process consists of a proposal for an agreement to be submitted to creditors. The debtor must draw up an allotment plan to distribute part of his assets to creditors; the latter, for their part, waive part of their credit, opting for a partial but secure payment. If the proposal is accepted by at least 60% of creditors, it also becomes binding on creditors who have not agreed.


Content and Procedure

debt problem

The proposal must contain the debt restructuring plan with an indication of the due dates and the methods of payment of the creditors, of the guarantees and of the possible liquidation of the debtor’s assets. It must be filed with the Court of the place where the debtor has his registered office or residence, together with a specific request and useful documents. If an agreement is reached between the debtor and the creditors, the judge validates it.


Requirements required

This procedure can be used under two conditions. The first is that the debtor is a person who cannot go bankrupt: that is, a consumer, a professional, a self-employed person, an agricultural entrepreneur, a small commercial entrepreneur, a private non-commercial entity or an innovative startup. The second condition is that the debtor is in a state of so-called over-indebtedness, that is, the situation that the law defines as “an ongoing imbalance between the obligations assumed and the assets that can be readily liquidated to meet them, which determines the significant difficulty in fulfilling one’s obligations. , or the definitive inability to fulfill them regularly “. In other words, the debtor’s assets must be insufficient to repay all the debts.

If you intend to evaluate the possibilities of repaying your debts through an agreement with creditors, or want to know how to access credit, Reliance can provide you with the assistance and advice you need.

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