We have two types of refinancing possible for individuals, namely: on the one hand, the refinancing of debt could be modification of the payment obligations of the debtor through extension of its period of maturity or the establishment of other obligations in lieu of those, what entails in practice the possibility of negotiating with creditors, periods of lack even the extension of the maturities of obligations, which would entail a higher interest payment, but a monthly amortization lower. By another, the refinancing, reunification or debt consolidation, could lead to the hiring of a loan of greater amount with collateral, which become short-term cash obligations obligations of term to long term, with increased economic spending in interest and other costs of formalization, but with monthly repayments more affordable. The need of refinancing, debt consolidation, or reunification is derived from a sudden, current insolvency situation, when the debtor fails to comply with his payment obligations or when insolvency is imminent, i.e., expected in the short term, it will start to renege on their payment obligations. It is possible to even that to produce the insolvency, the situation worsens with the inclusion of the debtor in the files of delinquent, situation that will make more difficult the refinancing of debt. So it is that the profile of the mediator must be very professional, with capacity for negotiation, communication skills, adaptability and ability to design an appropriate plan for the needs of consumers and be fair with the interests of financial institutions, i.e. need negotiate seeking the reconciliation of interests. Therefore, the first conclusion we extract is that refinancing, debt consolidation, or reunifiacion is a financial, bad operation from technical and economic point of view, the costs that supposed to cancel the foregoing obligations and constitute the new. However, this may be the only option when there is a breach of credit obligations or breach thereof is expected in the short term. From our point of view, the refinancing, reunification or debt consolidation, should be undertaken not only with enlargement of capital or fresh money, should be pursued, so that it is profitable, with a negotiation with all creditors involved, which includes the procedural representation, if applicable, (allowing pose a legal tactic) in order to achieve a fair settlement for parties that do not in the medium term a situation of insolvency.
| June 24th, 2013 | Posted in General |