What Is Restoration of Solvency?

Restoration of solvency is a court procedure that allows an individual to avoid bankruptcy and repay debts according to an approved plan.

Why is this procedure needed?

It helps to:

• restructure debts;
• reduce monthly payment burden;
• extend repayment terms;
• preserve property;
• avoid bankruptcy status.

Who is it suitable for?

This procedure may be suitable for individuals who have stable income but temporarily cannot pay all debts at once.

How does the procedure work?

The citizen applies to court. The court reviews income, property, debts, creditors, and financial situation. If there are grounds, a solvency restoration plan is approved.

What is a restoration plan?

It is a debt repayment schedule. It includes payment amounts, deadlines, creditors, and repayment procedure.

How is it different from bankruptcy?

In bankruptcy, the person declares inability to pay debts. In restoration of solvency, the person shows readiness to pay but needs a realistic schedule.

Conclusion

Restoration of solvency is a good option for those who have income and want to legally settle debts without bankruptcy.

FAQ

Is this bankruptcy?

No, it is a separate procedure.

Are debts written off?

Usually no, they are repaid according to the plan.

Is income required?

Yes, income is important to fulfill the plan.