prlinux
December 20, 2024
How the debt restructuring process works at apickle
As a business owner, you may find yourself juggling multiple debts from various creditors. Each of these creditors may have lodged caveats and ALLPAAPS (All Present and After-Acquired Property Security Interests) against a personal asset: your primary residence.Â
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In this scenario, one of the big four banks holds the first mortgage with a Loan-to-Value Ratio (LVR) at 60%. The total debt exposure from other creditors is at 80% LVR of the home’s value.
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This is where the apickle’s debt restructuring experts can help.Â
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The first part of the restructuring process: our expert team step in to raise equity finance of 70% of the home’s value. They would do this by:Â
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- Paying out the first mortgage @ 60%: The first step is to use 70% of the raised equity finance to pay out the first mortgage
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- Debt Negotiation: The remaining 10% is then used to debt negotiate with current caveators and/or creditors aiming to reduce the overall debt exposure from 80% to 70%
