Many professional mortgage services organizations help process mortgages and loans for fixed rates, process first time home loans, variable rate mortgages, and land loans as well as assist in debt reorganization. Debt reorganization, or debt restructuring, is an arrangement involving both the creditor and the debtor that change the original terms for servicing an existing debt 債務舒緩. Debt reorganization usually involves relief for the debtor from the existing terms and conditions of a debt obligation. This may be in response to liquidity issues, such as when the debtor does not have the cash needed to meet upcoming payments.
A debt reorganization package may involve more than one of the types mentioned above. For example, most debt reorganization packages that include debt forgiveness also result in a rescheduling of other outstanding debt. Debt refinancing transactions also include a balance of payment portion that is similar to debt rescheduling in that the debt being refinanced is extinguished and replaced with a new financial instrument or instruments.
Chapter 13 Bankruptcy is referred to as debt reorganization or debt consolidation. It is designed to stop a foreclosure on a home allowing for a homeowner to catch up on back payments usually over the course of sixty months. Chapter 13 can also be used to pay off an automobile, lower credit card payments, and pay back debt with no interest or penalties. Homeowners who have filed Chapter 13 in order to stop a foreclosure are still eligible to refinance their home. After filing for Chapter 13 and stopping foreclosure, the homeowner will often enter a credit repair program and refinance their home after the having made 12 consecutive, on-time payments in the Chapter 13 Bankruptcy. A Chapter 13 Bankruptcy stays on a credit report for seven years.
Debt reorganization is usually accompanies a bankruptcy filing, but not always. A reorganization proposal can be agreed upon by the creditors, with agreements in writing so that all parties know their rights and obligations. All attorneys and accountants involved should make every effort to have the agreement satisfy the requirements of a disclosure statement under the Bankruptcy Code in the event Chapter 13 Bankruptcy is filed. This is often referred to as a prepackaged bankruptcy.