It is an obvious question, why do creditors be
ready to take up the loss by agreeing to write off debt
program? A debtor who is not able to pay off the regular repayment schedule
will seek such help. It is clear that the borrowers are not in a financial
state where they can afford to repay the complete loan within increasing
interest rate terms. They don’t even have the required assets which can clear
off the debts, which leave the only choice for the creditors to agree with the
terms.
Creditors will not be ready and say yes to the
terms as soon as they see the agreement. The Ip you have approached will help
you to convince your creditors and explain everything to the creditors. You
might not explain these terms and convince them to do so, as you do not have
experience. And at the same time, by missing out the debt repayments did make
them lose trust in you within a certain time frame.
Your IP will persuade your creditors and
explain everything to them regarding your financial status. They will provide
assurance to the creditors about repaying a reasonable part of the debt. It may
not be a profitable deal but will avoid the loss to them.