The restructuring credit is a form of debt settlement. With this loan, the total debt is bought off against final discharge. In the debt counseling process, it is calculated how much the customer can pay from his budget each month during the 3-year process. This amount determines how much the creditors can get back of their outstanding claim. With a reorganization credit, the creditors receive their money immediately after approval, minus the interest costs of the credit. Because of the many benefits, we provide a restructuring credit in 75% of the debt settlements. The advantages at a glance:
The customer:
- gets rid of its creditors in one go and only has one creditor left: Kredietbank New York
- immediately has less stress and can immediately start working on his future. Debts never come alone. The peace of mind of a quick solution ensures that the customer can focus on solving bottlenecks in other areas of life;
- is motivated to work (more) through income improvement
- can take out additional health insurance again and that prevents high healthcare costs.
The creditor:
- has immediate clarity. He knows where he stands.
- can immediately close the books and that saves collection and administration costs.
- can reclaim the VAT charged from the tax authorities.
Your municipality:
- saves a lot of time, because the debt counselor does not have to carry out rechecks.
SOCIAL COLLECTION POLICY
We aim for a feasible situation in which the customer can meet his payment obligations in a responsible manner. If repayment is not made after the remediation credit has been provided, we will apply customization as early as possible. For example with a payment arrangement. This method works: 95% of the customers fully repay the credit.
BALANCING FRAMEWORK: WHEN A REMEDIATION CREDIT ?
Due to the many advantages and the limited risks, we always recommend a remediation credit, unless:
- it is (almost) certain that the income will change and this has significant consequences for the amount of the repayment options of the customer (repayment capacity);
- the customer's situation is not stable enough;
- the customer is not legally competent or authorized and there is no permission from the curator or administrator.
THE CLEARANCE CREDIT IN YOUR MUNICIPALITY: HOW DOES IT WORK?
Applying for a remediation loan is free. We do not charge any costs. We do, however, require working capital and security from you under certain conditions. Together we discuss what is needed and we arrive at a tailor-made solution for your municipality.
