Restructuring of a loan in a bank or MFO

Financial difficulties can happen to any individual or legal entity, especially during unforeseen circumstances or economic crises. One of the ways to solve financial problems is credit restructuring. This process allows the client to review the terms of the loan agreement with the bank or MFO in order to reduce monthly payments and obtain financial relief.

Credit restructuring: basic principles and advantages

Credit restructuring consists in making changes to the terms of repayment of the loan obligation, in particular, lowering the interest rate, changing the repayment schedule or providing a final discount on the amount of the debt.

Credit restructuring is a process that allows customers to revise the terms of their credit agreement with a bank or MFO in order to ease the financial burden and achieve financial stability. This process is based on cooperation between the debtor and the creditor in order to find a mutually beneficial solution for both parties.

The main principles of credit restructuring include:

• Interaction and negotiation: credit restructuring involves active interaction between the debtor and the creditor. This includes negotiations to change the terms of repayment of the loan, such as lowering the interest rate, changing the repayment schedule or transferring part of the debt to future periods.
• Analysis of the financial situation: before starting the restructuring, the debtor must conduct a detailed analysis of his financial situation. This includes an assessment of income, expenses, assets and liabilities to determine your realistic ability to repay the loan.
• Preparation of the necessary documentation: Restructuring of the loan requires the preparation of various legal and financial documents. This may include filling out a restructuring application, providing financial statements, payment schedules and other documentation that proves the need to change the loan repayment terms.

The main advantages of loan restructuring are:

• Lower monthly payments: By reviewing the terms of the loan, you can reduce the amount of monthly payments, which will reduce the financial burden on you.
• Lower Total Repayment Amount: Restructuring can help you get a discount on your debt amount or move some of your debt to a later period, reducing your total repayment amount.
• Relieve financial stress: Reviewing your loan terms helps create a more stable financial situation, allowing you to plan your budget and deal with other financial issues more effectively.

Legislative regulation of credit restructuring in Ukraine

Ukraine has a legislative framework that regulates consumer credit issues, including credit restructuring. According to Article 17 of the Law of Ukraine on Consumer Lending, the debtor has the right to apply to the creditor for credit restructuring in the event of a change in his financial situation or inability to repay obligations on time.

This law gives you the right to protection and the possibility of solving financial problems through credit restructuring.

If you have encountered a problem with repaying a loan or want to review its terms, the law firm "Prikhodko and Partners" is ready to provide you with qualified legal assistance.

We are ready to negotiate with creditors on your behalf in order to achieve the best conditions for bank loan restructuring, analyze your financial situation, prepare the necessary documentation and provide you with legal advice at every stage of the process.