Many borrowers, making a loan on a thing or even real estate, do not often wonder about their possible bankruptcy. And finding themselves in a similar situation, they begin to look for all possible options for how to get rid of loans. According to the law, now an insolvent citizen of Russia can get rid of credit debts without any problems and, most importantly, legally.
The essence of the bill adopted in 2014 is as follows: after the borrower is officially declared insolvent, all or part of the debt must be restructured for up to five years or written off for bankruptcy proceedings.
In order not to resort to extreme measures, before taking a loan, it is necessary to correctly choose credit organizations, carefully study the conditions for providing a loan and adequately assess the need for a loan. However, if an unforeseen event occurs, it will be more correct to familiarize yourself with how to get rid of a loan legally, and not try to outwit yourself.
Legal ways to get rid of debt
There are several legal ways to get rid of a loan:
- Debt restructuring.
- Sale of collateral.
- Deferment of payment.
- Appeal to guarantors.
- Declaring bankrupt through a court of law.
Do not take new loans to pay off old debts. Thus, the borrower can only worsen his already precarious situation. If the cause of insolvency was the loss of work, then in this case it is better to try to find a compromise with the bank and achieve a deferred payment for some time until there is a new place to earn money.
In those situations when the borrower’s illness became the reason for the lack of money, insurance for the borrower’s incapacitation could become the solution.
Debt restructuring
Debt restructuring is understood as a change in some points in the loan agreement regarding the interest rate, the maturity of the main debt, and also the schedule for paying off payments. This option of how to get rid of a loan legally is most acceptable in those situations when the defaulter has temporary difficulties and a delay in payments is required for a certain period of time. The bank often makes such concessions, and after the new law is issued, it will simply be obliged to provide the borrower with more loyal terms for repaying the loan.
Sale of collateral
The easiest and fastest way to pay off debt is to sell collateral. If all debt can be repaid, it may not succeed, then a more significant part of the debt can be covered. However, here it is necessary to take into account some nuances. It is best to sell the collateral on their own, as banking organizations sell it 10-20 percent below market value. The rest of the debt can be asked to “freeze” the bank or revise the payment schedule.
If the borrower has the only property, then even in court no one has the right to take it, only if the borrower himself has not mortgaged it to the bank.
Deferment of payment
A deferred payment is essentially the same debt restructuring, however, in this case, the bank can simply shift the maturity of the debt at a later time without resorting to a change in interest rates on the loan and other items under the contract. Deferral of payment is convenient for those borrowers who find themselves in short-term troubles, while they are confident in their early solvency.When deciding how to get rid of loans in a difficult financial situation, deferred payment can only be used as a temporary measure
Guarantor Assistance
In a difficult situation and not being able to further pay loan payments, you can ask for help from a surety whom the borrower brought to the bank as a guarantee of his solvency. If the surety is close and really able to solve for some time the question of how to get rid of loans, then you can safely look for other options for repaying the loan in the period when the surety will repay the debt.
Naturally, it will be more correct later to give back the amount of money that the surety will spend. But it is everyone who decides individually. At the same time, it is necessary to read in the loan agreement during which period the support of third parties will act as guarantors. In some banks, it can operate during the entire loan term, in others - no more than six months.
Bankruptcy Recognition
To get rid of a loan in a legal way, you can declare yourself bankrupt. This procedure is carried out in court, and a citizen can be declared bankrupt no more than once every five years. However, this option should be resorted to in extreme cases, because further it will not be possible to arrange any credit loans.
Also, if the borrower is declared bankrupt, all of its collateral property will be sold to repay the main debt. If the proceeds are not enough to cover the loan, then the insolvent borrower will be obliged to pay the remaining amount over a certain period of time, forcibly deducting money from his salary.
Mortgage issue
In cases where the apartment was purchased on a mortgage, and there are circumstances that do not allow further payment on the loan, there are the following ways to get rid of a mortgage loan:
- Sell real estate and pay off debt.
- To rent an apartment and repay a mortgage loan using the proceeds from the lease.
- In the absence of the opportunity to sell or rent an apartment, you can declare yourself bankrupt and transfer all property rights to the bank. That is, the apartment goes to the bank, since it initially acted as collateral.
In cases where the reason for the inability to pay a loan is family disagreement (divorce), the best option would be to sell a mortgage apartment and pay off the debt. If one of the spouses wishes to continue paying the mortgage loan, then it would be better to get the debt “frozen” through the court, with the subsequent transfer of the property to his property.
Borrow money
Another good way to get rid of loans quickly is to borrow money from friends or acquaintances. It is advantageous in a situation where the payment is almost paid off and it remains to pay only a few months. So, in order to reduce the amount of interest payments, you can repay them ahead of schedule, taking the missing amount.
Of course, not everyone has such good friends or relatives, but do not neglect this method, especially when you are in a debt hole. By reducing the amount of interest payments, you can repay another loan with these funds, if you have one, or quickly settle with new borrowers in the form of friends or relatives.
How to get rid of an overdue loan
There are also cases when, after the “freezing” of debts, there is no way to pay bills. Then instead of declaring yourself bankrupt it is better to declare mortgage auction property. The bottom line is that the bank puts up for auction the property of the borrower, who, in turn, gets the opportunity to sell the property at a higher price than by contacting a specialized agency.
After the money received from the sale of the property appears, the borrower repays the overdue loan and withdraws all obligations to the bank.
Often, banks turn to collection agencies in order not to independently resolve issues with problem borrowers.
If the debt knockout agents use illegal methods against the borrower, then he can contact the law enforcement authorities.
Further, in court, the borrower will have the opportunity to write off most of the debt or cancel hidden interest payments, which partly solves the issue of how to get rid of loans with a long delay.
Problem credit cards
Sometimes, in case of urgent need for financial resources, citizens draw up credit cards. For example, if you get a card for 20,000 rubles, you end up having to pay 35,000-40000 rubles, while spending 10-15 thousand rubles. This method of loaning funds is becoming increasingly popular not only in Russia but also throughout the world.
For example, Tinkoff Bank independently issues credit cards. Bank customers who do not want to continue to use such a service and do not know how to get rid of a Tinkoff loan find themselves in a financial situation no less unpleasant than overdue loans.
Just throwing out the card, it is impossible to solve the problem of its return. The bank remains a registered account with the borrower, and interest continues to accrue even if the debtor no longer sees this ill-fated credit card.
So, in order to stop cooperation with the bank, you can find the advice of its other customers who have decided how to get rid of loans. Feedback from former borrowers of banking organizations will help to find the right and proven solution.
The most correct and legal way to get rid of credit cards is to pay all debts and close a bank account.
Solving issues through the court
The loan borrower is recognized by the debtor only through the court. Thus, finding himself in an unpleasant financial situation and not being able to further repay the loan payments, the borrower can judicially obtain payment of his debt without any hidden interest, commissions and other bank charges.
That is, the main amount of monetary debt to the bank remains, which the citizen will have to pay off taking into account the size of his salary. At the same time, the bank will not be entitled to demand more than 50% of the borrower's income. This method is legal and perfectly solves the issue of how to get rid of loans without overpaying huge amounts for bank interest and commissions.
Unpleasant moments
With all the desire to get rid of loans, you can’t just go to court and declare your unwillingness to pay further on debts. The court may declare the borrower insolvent and take its side if the debtor has objective and compelling reasons, such as disability due to illness or loss of source of income. In other cases, deliberate evasion of credit payments may be recognized as fraud, and an unscrupulous payer will be called to criminal liability.
Last Tips
In the event of various financial difficulties, any borrower can contact a specialized financial organization that will competently and legally solve his problems and tell you how to get rid of loans. Russia is rich in highly qualified financial specialists who can provide financial protection, including from collectors.
Some companies may take full responsibility to banks, and even in court, of course, for a fee. But in any case, the borrower will benefit much more if he pays for a competent solution to the issues, rather than he gets stuck in a debt hole.
Some insolvent borrowers even resort to such extreme measures as changing their place of residence, if only the lender did not find them. They hope that their duty will be forgotten, and everything will be decided by itself. Of course, only illiterate people can do this.You should not resort to such a decision, because, in addition to increasing debt, an unscrupulous borrower will also face criminal liability.
After the issue of credit troubles is resolved, it will be useful advice for citizens not to take excessive loans and adequately assess their financial capabilities.
Remembering the crisis of 2008, I would like to emphasize that it is not worth helping to inflate the “soap” credit bubble again, but to take loans only when necessary and only fully confident in its solvency. Things purchased on credit will soon cease to bring joy to possess them, but rather become a source of irritation when there is no way to pay debts for them. In some cases, it is worth a little wait, accumulating the necessary amount of money, than to pay huge interest for it.
