loan restructuring
Modified repayment terms
Loan restructuring is the process of modifying the terms of an existing loan—typically to make repayment more manageable for a borrower in financial difficulty.
Changes may include extending the repayment period, lowering the interest rate, or reducing the principal owed.
After the company missed several payments, the bank agreed to a loan restructuring.
Unlike refinancing, which replaces one loan with another, restructuring renegotiates the original agreement.
- lendersThose who provide loans
- payment planArranged installment schedule
- interest rateCost of borrowing money
- balloon paymentLarge final loan installment
- financial hardshipSevere money difficulties
hardship letter · borrowers · financial advisors · guarantors · legal representatives · debt consolidation · refinancing · credit score · consumer protection laws · forbearance · grace period · medical expenses · government agencies · regulators · investors · fresh start · foreclosure prevention · unemployment
loan restructuringdebt forgiveness
Cancellation of amounts owed
loan forgiveness · debt cancellation · debt relief · loan modification
loan restructuringforeclosure
Lender seizes mortgaged property
debt collection · repossession · asset seizure · litigation · wage garnishment
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