When you can not pay a loan legal?
Ways to pay a loan legit, unfortunately, not as many and not for every borrower they fit. If you understand the intricacies of legal regulation of the loan it is possible to allocate the following options to pay the loan:
- the agreement with the Bank;
- the application of the Statute of limitations on the loan;
- the occurrence of the insured event;
- of declaring yourself bankrupt.
Is it possible to negotiate with the Bank about not paying the loan?
If you cannot pay the loan, then the first is to try to negotiate with the Bank on possible changes to your credit obligations. On the basis of their financial situation, it is possible to invite the representatives of the credit institution the following solution:
- debt restructuring (e.g., increase the period for repayment of the loan);
- making a new loan to pay off debt on a previous loan;
- the temporary cessation of repayments of principal amount (for the period of deferment on the loan will have to pay only the interest).
Do not expect that the Bank will forgive the debt. But in the interest of the lender to negotiate peacefully, as in most cases the employees understand that even a successful court case to recover overdue debt may not give a positive effect. Because the borrower may not be the official income and property is suitable for foreclosure.
How to apply the Statute of limitations to avoid paying on the loan?
When there is nothing to pay on the loan, the debtor can "lay low" and wait for the action of the Bank. For the application of the Statute of limitations on the loan will need to wait for requests of lender in court. This is where you can declare that the Bank missed the deadline for applying to court in order to recover the debt on the loan. It is worth remembering that the Statute of limitations on the loan is 3 years from the date when the debtor made his last payment.
How insurance works, if you can't pay the loan?
Usual banking practice is the imposition on the borrowers of services of insurance companies for insurance of life and health. Many borrowers very unhappy that you have to pay for insurance. But to no avail. When credit is issued for long term, over this period of time can happen anything. The borrower may lose his ability to work, and therefore, the ability to receive the income and pay the loan. In feature coverage in such a situation, the loan will be repaid by the insurance company. In addition, you can insure not only your health, but the risk of job loss.
The debtor-bankrupt: you can not pay the loan
In the case where the situation seems to be deadlock and to pay the loan absolutely nothing, the debtor may apply to the court for recognition of the bankrupt. This procedure is very challenging and time consuming. When bankruptcy is worth remembering about the possibility of debt restructuring (for those cases where the borrower refuses absolutely to pay the loan).
Please note!If you have property or official income, in the framework of the bankruptcy procedure property may be sold and a portion of the income seized to repay the debt on the loan. After bankruptcy debt loan will not have to pay, but it may occur serious financial constraints.
Before not to pay a loan you should contact an attorney. A specialist can assess your documents and situation, and to determine whether you have a lawful possibility not to pay the loan. If there is debt on the loan without sufficient grounds, it may come very serious consequences.