Is it possible to legally write off credit debts?

Unfortunately, many of us, when registering a loan for a fairly decent amount, are not able to properly assess their financial capabilities. Often we forget that even one day of delay can result in huge fines and penalties. According to available statistics, two-thirds of the total number of borrowers are in arrears. Therefore it is not at all surprising that many of them are interested in whether it is possible to legally write off bank debts.

Is it possible to not pay with credit with impunity?

If the borrower for a long period does not make mandatory monthly payments, then the bank's representatives are forced to take extreme measures. The only thing they can do in this case is to initiate the beginning of the trial. After the court issues an order to collect the debt, the corresponding decision will be transferred to the bailiffs. From now on, they will have to slow down the negligent borrower. But, fortunately, their powers are not too broad. According to the current legislation, bailiffs have the right:

• Through the tax inspection to find out the official place of work of the borrower and monthly to calculate half of his earnings;
• Arrest the accounts of the debtor, if any, and already with them write off the amount of debt;
• To arrest the car issued on the borrower.

By law, bailiffs do not have the right to take away an apartment, which is the only dwelling. If the borrower is not officially employed anywhere and does not have bank accounts and valuable property, then the only thing that can be done by court executors is to close the exit abroad. The bailiff, who was convinced of the hopelessness of the recovery, sends to the bank a document confirming this fact. In this situation, the bank has to agree to a legal write-off of loans. However, do not think that this is a widespread practice. Typically, this happens in extremely rare cases.

The most realistic reasons for starting such a procedure

As a rule, banks are extremely reluctant to legally write off overdue loans. To start this procedure, you need very strong arguments. Banks agree on such an unprofitable step only if:

• The loan was issued on the basis of forged documents. In such situations, law enforcement agencies start dealing with fraud.
• In the financial institution there is a huge amount of problem loans and employees missed the deadline.
• The bank lost the court, which obliged it to carry out a legal write-off of the loan debt.

To other common reasons for the beginning of this procedure is the death or loss of the borrower. If after the deceased there is no inheritance that could be shared between his relatives, then no one will repay his debt, and the bank will have to start a legal write-off of credit debts. The same goes for the missing borrowers. If law enforcement agencies can not find him for a certain period, they give the bank a document confirming his disappearance.

A few words about the periods of limitation

Domestic legislation provides for such a term as the limitation period. It allows borrowers to hope for a legitimate write-off of credit debts. Thus, the time during which a financial institution has the right to collect debt from an unscrupulous borrower in court is three years. However, in the process of determining this period, it is necessary to take into account a number of important nuances.

First of all, it should be understood that the starting point is the date of the last payment. In addition, representatives of the bank begin to work with problem borrowers after a 30-day period after the delay. Three months later, the legal department is connected to this process . If, after 90 days, the debtor has not made the necessary payments, the bank sues. As a result, the reference point is reset to zero. From this moment a new countdown begins.

What precedes the write-off of debt?

Some borrowers mistakenly believe that the legal writing-off of credit debts is a simple procedure. In practice, it is preceded by a number of specific activities. Do not forget that the bank can begin to recover by using the services of special departments specializing in dealing with distressed assets. In addition, he has the right to get rid of financial ballast by selling his collection office.

What if the bank sold the debt to the collectors?

Before recognizing a bad debt, a financial institution can take one more, this time the last attempt at least something to get from this overdue loan. Recently, a lot of collection offices have appeared, which, for a pittance, buy up distressed assets. It is not excluded that the bank will decide to sell your loan to one of such companies. Therefore, the debtor should be prepared for a new meeting with the collectors. As a rule, the latter try to negotiate peacefully, without exerting excessive pressure on the borrower. They can offer restructuring on fairly favorable terms or even forgive some part of the debt. But if the borrower and in this case is not susceptible to the influence of the recoverers, then the final and legal write-off of credit debts occurs.

Conclusion

Making a loan, you need to properly assess your own capabilities. Before you go to the bank, you need to carefully analyze the situation and really think about what amount will not turn into an unbearable burden for you. Those who are still in a difficult position can be recommended to seek help from a qualified lawyer who will prompt the way out of the situation. Hoping to write off the debt, you should not forget about the possible consequences. As a rule, unscrupulous borrowers are entered into the so-called black list, as a result of which not only its credit history deteriorates, but also the reputation.