Debt restructuring for individuals, how it works and what it is used for

The Bankruptcy Law provides various opportunities to allow debtors to deal with debts that have become too onerous and impossible to pay, some of which are also aimed at private individuals.
Among these, debt restructuring stands out, an agreement that allows debt to be paid when there is no other means to do so, even in a relatively short time.
For the same reasons, the debt restructuring agreement is also convenient for creditors, allowing them to obtain the payment due even in the absence of different solutions (for example if the debtor has no seized assets).
Here is a guide on debt restructuring for individuals.
What is debt restructuring Debt restructuring is a private agreement stipulated between creditor and debtor concerning a repayment plan which must be approved by the court.
The Bankruptcy Law (and subsequent updates) do not impose restrictions on the timing for compliance nor on the content of the agreement which can, therefore, take the form of extinction, deferral or reduction of payments.
It is, in fact, a facilitated procedure, aimed at those who find themselves in a condition of financial imbalance.
As already mentioned, there is a specific debt restructuring procedure aimed at private citizens as consumers, thanks to the over-indebtedness law (n.
3/2012).
read also How to stop real estate foreclosure by taking advantage of a recent ruling by the Supreme Court What is it for? The debt restructuring agreement allows you to deal with debts, agreeing on a sustainable repayment plan according to your financial position, in a facilitated and reduced manner.
It is therefore an indispensable procedure when the private debtor has no means to meet debts that have become too onerous.
At the same time, the debt restructuring agreement is also a providential solution for those who have assets and wish to safeguard it from creditor attacks.
The debtor who stipulates an agreement of this type, in fact, blocks the enforcement procedures and seizures on his assets, avoiding liquidating his assets.
Among the procedures provided for by the Bankruptcy Law, this is not the quickest option, as it also includes a judicial phase, but it has undisputed advantages for the private debtor, who can protect his assets and free himself from debt without succumbing.
On the other hand, the creditor has the advantage of obtaining payment of the credit, albeit in a reduced manner, but in shorter and safer times compared to enforcement procedures.
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the private agreement between debtor and creditor, and a judicial phase for approval .
Before reaching court, therefore, the debtor must draw up a proposed agreement and present it to the creditors.
The debtor must be supported by a lawyer, who will also take care of presenting the appeal for the agreement to the competent court.
The appeal must already contain a draft of the repayment plan, with the proposed payment methods and timing and document the debtor's financial situation.
In fact, for success it is essential that the debtor, despite the financial imbalance in which he finds himself, can prove that he is able to pay the debt in the identified ways.
In any case, it is then the accounting expert appointed by the court who verifies the agreement and stipulates a repayment plan and the settlement methods based on the debtor's possibilities.
The request to the court must also contain the agreement between the parties, which is essential to activate the procedure, and all the useful tax and accounting documents, such as tax returns, the list of creditors and tax and contribution debts.
It is then necessary that the agreement is signed by the creditors representing at least 60% of the debts.
Subsequently, the court evaluates the validity of the agreement and, in the absence of opposition, decrees its approval.
The agreement can however be modified, with the same procedure, even at a later time.
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