Debt rescheduling
An adjustment of a loan's repayment terms, extending the term, lowering the installment, deferring payments, without clearing it via a new loan. Unlike a buy-back or consolidation, the original contract is kept and merely amended by addendum.
Key points
- Modification of an existing loan's repayment terms without settling or replacing it.
- Can take the form of term extension, payment deferral or monthly installment reduction.
- Materialized by an amendment to the original contract, without setting up a new loan.
- Different from a buy-back or consolidation: no early repayment, no new initial APR.
Frequently asked questions
In which cases is rescheduling preferable to a loan consolidation?
Rescheduling is faster and less costly in fees because it does not generate a new loan. It suits situations where the problem is temporary, a transient income loss, for example, and the borrower does not want to extend the overall term of all their loans. If several loans are involved or the rate is penalizing, consolidation offers more levers.
Is the bank required to accept rescheduling?
No, the bank remains free to accept or refuse the amendment request. In practice it often prefers to reschedule rather than risk a default because it avoids the loan acceleration procedure and collection costs. The broker can act as a facilitator in this negotiation by presenting a structured case.
What mistakes should be avoided when requesting rescheduling?
Waiting until there is already arrears to contact the bank is the primary mistake: an anticipatory request is better received and preserves the institution's trust. It is also important to check the impact of the term extension on the total cost of the credit and ensure the new installment remains compatible with long-term repayment capacity.
In practice
Following a six-month sick leave, a borrower can no longer afford their €900 monthly installment; the bank agrees to rescheduling by amendment, extending the term by 3 years and lowering the installment to €680, with no early-repayment penalties and no new loan.
Put it into practice with CourtImmo
See how CourtImmo software helps brokers on this topic:
Official sources
- Difficulty paying mortgage installments · Service-Public.gouv.fr
- Obtaining a mortgage loan · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr