People sometimes end up in such dire financial straits that they are no longer able to pay their creditors. In such situations, it is possible to apply for debt restructuring, which involves a compulsory write-down of the debt to creditors.
Debt restructuring means that, over a period of typically five years, you have to repay a certain amount to your creditors, based on your total net income. The repayment period may be three years, depending on the circumstances, if the debt restructuring concerns commercial debt and is initiated following bankruptcy.
Debt restructuring is possible if you are hopelessly indebted, and it must be assumed that you will not be able to pay your creditors in the future.
However, the debt restructuring rules are complicated, and decisions to initiate debt restructuring are made by a bankruptcy court, often based on a very specific assessment. It is therefore important, early in the process, to seek advice about the various options.
We have in-depth knowledge of the debt restructuring rules, and we advise both initially on the possibilities for debt restructuring and in connection with applications for debt restructuring to the bankruptcy court.