Lenders often are willing to reschedule debt payments to avoid forcing the borrower into outright bankruptcy.

Question

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Lenders often prefer to work out a payment plan or debt restructuring with the borrower rather than go through the expensive and time-consuming process of bankruptcy. This allows the lender to still recover some of the owed funds and avoids damaging the borrower's credit score and reputation.

Lenders Often Are Willing to Reschedule Debt Payments to Avoid