Why Banks May Refuse to Restructure Your Debts:

When someone attempts to restructure their debts through an out-of-court procedure, it's not certain that the bank will accept the arrangement. There are many reasons why such a request may be rejected. Let’s look at the most common ones:

• The debtor's current financial situation: If the debtor cannot prove that they can pay the new installments they propose, the bank may refuse.
• Payment history: If the debtor has a history of payment delays, the bank may consider them unreliable.
• Amount of debt: For very large debts, a restructuring may not be feasible.
• The nature of the debt: If the debt resulted from illegal activities, the bank is not obligated to restructure it.
• Involvement of other creditors: If there are other creditors involved, they all must agree to the restructuring.
• If a restructuring has already been made: If there is already an active arrangement, unless excluded by the applicant under the law’s conditions, creditors may not accept the out-of-court restructuring.
• If the debtor is bankrupt or in liquidation proceedings.

In simple terms:

The bank considers many factors before deciding whether to accept a restructuring proposal. It is important for the debtor to be cooperative and submit a realistic proposal.

What should someone do if their application is rejected?

If your application is rejected, you can submit a counteroffer either within the framework of the out-of-court procedure or through direct bilateral negotiation with the respective creditor.

Advice:

It is important to consult a lawyer specializing in debt matters to assist you throughout this process.