Are you in heavy debt?

It's time to turn to a debt settlement that will help you recover financially and quickly

If you are in debt, you probably want to settle them quickly, but if you fear that you will be declared bankrupt or insolvent, it is time to apply for a creditor settlement procedure

In collaboration with legal zap

09/22/2022

Thursday, September 22, 2022, 12:00 Updated: Wednesday, September 28, 2022, 08:12

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Have you fallen into heavy debt?

Don't despair, the creditor settlement procedure can ease the situation (Photo: ShutterStock)

The creditor settlement procedure is not a trivial matter, but on the other hand it is possible to reach a proper settlement in several ways.

What is important is to do it skillfully, with wise conduct in front of the bodies related to the issue.

In the following lines, we will try to bring you the main points in the creditor settlement procedure so that you can quickly clear your debts and continue to conduct business as usual.

First, it is important to note that the creditor settlement procedure without issuing an order to open proceedings is a "shortcut" procedure for the insolvency and financial rehabilitation procedure.

That is, in most cases the hearing takes place about six months after the application is submitted.

This procedure has many advantages since it enables direct, short and often cheaper negotiations with the creditors.

What else is important to know?

In the creditor settlement procedure, the debtor can continue to manage a licensed dealer and/or company without the need for permission from the court.

Also, the debtor has the option of eliminating the debt at any given moment by raising funds from a designated loan or help from family - this is an efficient, short and effective procedure without the need for a very long wait.

A creditor arrangement is reflected in several processes and first, we asked Attorney Soumia Azaiza to detail for us a creditor arrangement in the financial recovery process.

"In order for each debtor to be able to formulate a creditor arrangement while continuing with his business or daily activities, a request is submitted for him to delay the proceedings against him, that is, to freeze the existing situation against the business and/or the debtor, and this is so that his creditors do not deteriorate his situation and reduce his chance of returning to business at the end the procedure," explains Attorney Azaiza.

For how long was the order to delay the proceedings granted?

"In most cases, the order in question is given for a short period of time, but on the other hand, when necessary, it is extended. It is important to say that there is a 90-day limit in which the debtor's creditors are prevented from accessing his assets and taking collection procedures against him. The fact that any insolvency case management requires a strategy in advance It led to the fact that it is better to be an initiator and not a laggard, therefore there is great importance for advance planning and quick action."

"Creditors should agree to a settlement because that way they will be able to pay off their debts at the end of the process. On the other hand, the debtor should reach a creditors' agreement because that way he can avoid bankruptcy and the various severe restrictions that will apply to him. Such a settlement will ultimately help each of the parties to decide on the alternatives before them." How important

is

"Every debtor should know that in order to maximize his chances of reaching the best settlement, in any situation in this area, he needs a lawyer who 'swims' in the material. An experienced lawyer will examine and handle all the elements of the big picture - all the creditors, the personal and family situation of the debtor and other subjective data. Understanding all the components will result in him making the best decision for his client."

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