Debt Restructuring is the process in which a debtor and creditor, who currently have a credit contract in place, agree on a revised amount that the borrower can pay back.
Typically, the party in debt works with their debt management advisors, who in turn speak with the creditors, in an attempt to reduce the debt owed or the period of repayment.
Any agreed restructuring of the current debt is built upon existing contracts and is typically only agreed to if it can be clearly evidenced that financial hardship is present and that the debtor has very few and limited alternatives.
It should be remembered that restructuring debt may hurt your credit score because credit companies take the view that borrowers are defaulting on their original agreement.
We work closely with several local debt charities including adviceni.com and ruralsupport.org.uk providing training and support. Linda Wilson, our Voluntary Sector Services Manager, works closely to ensure that our services are accessible to those most in need.