If your debts are overwhelming, you may consider asking your creditors to restructure the amounts that you owe to make your debts easier to pay. Having your debts restructured can lower your stress levels and save you from foreclosure or a lawsuit.
Facts
A restructured debt is a debt on which the original repayment terms are modified. Creditors restructure debts to lower the odds that a consumer will default on the amount she owes.
Features
The most common types of debt restructuring are mortgage loan modifications and debt settlements.
Benefits
A debt restructuring makes a debt easier for a consumer to pay by lowering the interest rate, extending the repayment plan or lowering the outstanding balance the individual still owes.
Considerations
If your creditors will not work with you to restructure your debts, you may consider filing for Chapter 13 bankruptcy. When you file, the bankruptcy court will often force your creditors to modify your debts so that you may pay them off over a three- to five-year period.
Warning
Some forms of debt restructuring can be detrimental to your credit report and lower your credit score.
0 comments:
Post a Comment