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Debt restructuring proceedings are intended for situations where a person is facing payment difficulties but is not yet permanently insolvent. The aim of the proceedings is to find a realistic solution for meeting obligations and to prevent the situation from worsening.
Restructuring may involve, for example, extending payment deadlines, performing obligations in instalments or, in certain cases, reducing obligations. The suitability of the solution depends on the debtor’s income, financial position, the amount of obligations and the interests of creditors.
How we can help
We assist, among other things, with:
initial assessment of the debt burden and payment capacity;
preparation of a debt restructuring application;
preparation of the list of assets and debts;
organisation of creditor data and claims;
preparation of explanations, applications and supporting documents;
communication with creditors, the court and the trustee;
development of a realistic payment schedule and action plan.
Requirements for the proceedings
Commencing the proceedings requires correct information and an honest overview of the debtor’s situation. The court may dismiss the application or refuse to commence proceedings if the information submitted is incorrect, necessary information has not been confirmed, the debtor has obstructed the satisfaction of creditors’ claims or another statutory obstacle exists.
If the debt burden has become difficult to manage, it is worth reviewing the situation before payment difficulties turn into permanent insolvency.
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