What happens if you don't pay your loan?
Miscellaneous / / September 29, 2023
Depends on the length of the debt and your actions.
First of all, you should look into the agreement with the bank - there are answers to many questions, including those about late payments. And read credit law, where there is all the information about the legal relationship between the borrower and the credit institution.
Missed one monthly payment
This is usually the practice. If the borrower does not pay on time, the credit institution may charge him a fine. But if less than three days have passed since the due date, the bank may consider the delay to be technical. In this case there will be no penalties. But the borrower himself must contact the bank and tell him that he will not be able to deposit the money on the specified date. It is worth doing this on the day of payment, or better yet the day before.
The bank may accommodate and not charge a penalty if the payment is overdue for the first time and the borrower is able to repay it within the next 1-3 days. It may not work - it depends on the bank. But even if the delay is recognized as technical, the next payments should be repaid on time. For the second failure, the bank will almost certainly charge a fine to force the payer to carefully fulfill his obligations.
There are situations when income drops sharply. The borrower misses one payment and is not sure that he will be able to quickly repay the debt. Moreover, he does not know at all whether he will be able to regularly deposit the required amount. In this case, you should immediately contact the bank and try to negotiate new terms. The financial institution may offer several options.
Apply for a credit holiday
They will allow suspend loan repayment for up to 6 months. The borrower must make the next payment after the deferment, and percent, there will be no penalties or fines for this period. But the borrower will need to provide the bank with documents confirming a sharp drop in income. For example, sick leave or a copy of the work record book with a notice of dismissal.
Negotiate a grace period or debt restructuring
In this case, the bank may also ask for documents indicating a decrease in income.
A grace period is very similar to a deferment. But if in the second case you don’t need to pay at all for several months, then in the first case there is still a regular payment. However, it is greatly reduced compared to the usual amount. And it remains that way until the end of the grace period. And then it becomes the same.
Bank Maybe propose loan restructuring. In this case, the amount of monthly payments may be reduced and the loan term may be increased. You will also have to pay regularly, but in smaller amounts than in the original agreement.
It is important that the bank can issue credit holidays or a grace period only to those clients who have not previously been late. And for those whose credit history has no problems with previous loans.
Consolidate loans or refinance
The method is suitable for those who pay off several loans. They can be issued in different banks. The goal of refinancing is to combine all obligations into one loan and repay only that. The interest rate in this case may be lower than the amount of monthly overpayments on several loans and cards at once. In addition, the bank can increase the loan term. Then the borrower will repay duty longer, but the monthly payments will be smaller, and he will be able to make them without problems.
Missed several payments in a row
If a borrower does not make regular payments for a long time, he may have problems. As a rule, banks first try to come to an agreement with clients and resolve all issues peacefully. Over the course of one to two months, employees of the financial institution will regularly call the borrower to ask when the payment will arrive.
Scenarios for communication with creditors may be different. Representatives of one bank may not speak very politely to debtors. They will urgently demand repayment of the debt, interest and penalties that are growing every day. Employees of the other will try to offer various options for getting out of the current situation. For example, carry out the same refinancing.
When the situation has already reached the calling stage, it is better not to ignore such conversations. And yet, together with the bank, look for a solution that will suit all parties. But if the client does not want to cooperate, the bank can go to court.
If the delay exceeds 60 days, the creditor has the right demand repay all remaining debt with interest. The return period is from 30 calendar days.
If the amount of debt does not exceed 500 thousand rubles, the bank can contact to the arbitration court or to the magistrate.
In this case, the meeting may take place without the participation of the borrower. If all documents are available, the court will make a decision in favor of the plaintiff, that is, the financial organization. The court order to collect the debt will be sent to the borrower himself, as well as to the bailiffs. Then they can withhold part of the salary every month, seize property and prohibit the debtor from leaving abroad. Well, the defendant, that is, the one who did not pay the loan, will also have to pay off legal costs.
Each financial institution decides for itself how to deal with unscrupulous borrowers, and there is no single standard. For example, instead of going to court, the bank can turn to collectors. But in any case, the defaulter will have to pay. And the longer the delay and the less desire to resolve the conflict, the higher the final amount may be. Therefore, it is better to solve all problems with the bank when the first problems with payments arise.
The debtor declared himself bankrupt
If the debt is from 50 to 500 thousand rubles, the borrower can apply to the MFC with an application. In it, he must report all existing loans, as well as the inability to pay debts. In this case it can pass extrajudicial procedure bankruptcy.
But if the borrower's income allows him to pay off creditors or he has property that can be sold to pay off the debt, bankrupt he is not recognized. And you will still have to pay back the money, only after the sale of the property. Or using monthly deductions from your salary.
If the amount of debt exceeds 500 thousand rubles, the debtor, in order to become bankrupt, needs contact to the arbitration court.
A citizen can wait up to three months for a decision. If the court finds that the borrower is truly insolvent, he admit bankrupt.
But in this case, it will be very difficult for him to obtain loans in the future - his credit history will be severely damaged. And if the bank is ready to issue a loan, it will be for a very small amount.
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