How to restructure credit card debt?

Every person at least once in his life, but use credit cards, because it is a convenient method of obtaining additional funds to his income. However, when a citizen takes out a loan, he expects to be able to repay it in the future. However, it often happens in practice that a person's life circumstances change and he loses his main source of income, which as a result only contributes to an increase in credit debt in a financial institution. In such cases, debt restructuring comes to the rescue, with the help of which you can write off part or all of the loan in general at the bank. This shows the relevance of this topic today in the conditions of martial law in the country. In this article, we will look at how you can restructure credit card debt at the bank today.

What should be understood by debt restructuring?

Restructuring of the debtor's debt from a credit agreement concluded with a financial institution involves changes in the procedure for fulfilling his obligations under this agreement, i.e. a review of possible ways and terms of debt repayment.

In addition, restructuring may include reducing the amount of monthly payments, transferring part of the debt to the end of the credit term, or even reducing the interest rate to ease the financial burden of the debtor or writing off a certain part of the debt, the amount of interest, penalties (penalties, interest, etc.). All this is done so that in the future the creditor will be able to receive the funds that he provided to the debtor for use without going to court.

What are the legal grounds for debt restructuring?

Today, the only basis for financial restructuring is a written agreement between the debtor and the creditor that each party agrees to debt restructuring.

Where should I turn to for debt restructuring?

To start the above-mentioned procedure, the debtor should submit an application to the financial institution from which he borrowed funds. This application must provide a description of the life circumstances that led the citizen to a difficult financial situation, as well as relevant evidence that confirms the words stated in the application.

It is also worth noting that financial institutions that are creditors of the debtor have the right to participate in the financial restructuring procedure. Other creditors have the right to participate in the financial restructuring procedure, if at least one financial institution, which is not a person related to the debtor, participates in such a procedure.

What to do in a situation when a person applies to the bank where he received a loan, but the latter refuses him to carry out debt restructuring?

If you have such a situation, you have the right to turn to another financial institution that did not issue you a loan with a request for debt restructuring. Such a financial institution will be able to offer you certain conditions for debt restructuring, which will prevent the accumulation of even more debt on the loan.

If you need to carry out credit restructuring, but you are not sure that the financial institution will give you consent to carry out such a procedure, then in this case you should contact proven specialists - the Prykhodko and Partners law firm.

Our team has deep knowledge in the field of financial law and has many years of experience of interaction with various financial institutions. In addition, we specialize in providing only high-quality legal assistance in cases related to debt restructuring. So don't delay and ask for a consultation!