Debt restructuring is a process that allows a private or public company or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts to improve or restore liquidity so that it can continue its operations.

What is debt restructuring?

Debt restructuring is a process used by companies, individuals, and even countries to avoid the risk of defaulting on their existing debts, such as by negotiating lower interest rates.

Is debt restructuring a good idea?

Debt restructuring can be a good idea if you're having trouble affording your payments. It may depend, in part, on your overall financial situation and the types of debt restructuring that your lender offers.