In our article we want to talk about a very relevant topic regarding various types of credit debt. Very often people are interested in the question: is it possible to write off debt? And this is not always directly related to unwillingness to repay debts. After all, not always, taking a loan from a bank, you can correctly calculate your strength. In our financially unstable world, things change very often. And if today a person is solvent, then this is not a guarantee that in a month his situation will not worsen.
Is a full cancellation of debts possible?
Full write-off of credit debts without any payments - this is almost an unrealistic situation. This can happen in two cases: the statute of limitations has fully expired, or the bank recognizes that it is not possible to receive debt from the client due to the absence of any property.
As for the first case, the bank employees are well aware of the laws, and therefore are unlikely to allow such a delay.
In the second case, the bank submits a lawsuit against the non-payer, which makes a decision, usually in favor of the credit company. Further, the judicial authorities oblige the debtor to pay at least the principal amount of the debt without penalty and penalty. The writ of execution is sent to the relevant authorities. If the debtor cannot be found for a long time, or if he does not have any property, then the FSSP informs the bank about this. In such a situation, a credit institution will most likely have to complete full debt write-off, since there is no way to collect it. At the same time, a huge number of overdue loans noticeably spoil banking indicators.
When can a bank forgive debts?
In what cases is it possible to write off debts by banks?
- A small amount of debt. The fact is that the collection process also requires financial costs. Collector services are paid, their own resources are covered. If the amount of debt is small, then it may not be very profitable for the bank to start the procedure, in which case it may take a more preferable decision to write off the debt. But, again, the debt should be very miserable.
- In the event of the death of the borrower and the absence of heirs. In this case, the debt will be written off, because there is simply no one to pay it.
- Bank employees missed the statute of limitations. As we said earlier, this simply does not happen, since the credit departments are closely monitoring this. But theoretically, debt relief is possible.
Is it possible not to pay for a loan with impunity?
According to lawyers, there is one loophole, knowing about which, you can not repay the loan. In this case, the bank is likely to have to write off the debt.
As everyone knows, the most stringent penalty is the transfer of the case to court. When making a decision on debt collection, documents are transferred to the executors. Further, bank employees and bailiffs begin, to put it mildly, to slow down the debtor. According to the law, they can take the following steps:
- If a person is officially employed, then, having learned of the tax place of his work, they can charge up to fifty percent of wages.
- If the debtor has bank accounts, they will be arrested, and the money will be used to pay off the debt.
- If there is a car registered with the borrower, then it will be taken away again against the debt.
- As for the apartment, if it is the only housing, then it is impossible to take it away in a legal way.
In the same case, if a person does not work officially and does not have any accounts or property registered on him, then the only thing that can be done from the point of view of the law is to issue a write-off of bad debts and close the citizen's departure abroad. Other exacting measures are not provided by law.
If the bailiffs see that the collection is hopeless, then they can send a decree to write off the principal debt to the bank. Sometimes banks massively forgive small debts, clearing their credit affairs and funds, but this is very rare.
From the point of view of the law, these are all measures that can be taken regarding the debtor. In real life, things are a little more complicated. Writing off debt on a loan is, in principle, possible, but such a phenomenon is extremely rare. In addition, all this will be preceded by an incredible attack from the relevant departments of the bank, bailiffs and collectors. Not every person can withstand such a stressful situation.
Debt restructuring
In the event that the financial situation changes and the person is no longer able to pay the loan, you can try not to bring the case to court, hoping for a partial write-off of the loan debt. There is still hope to restructure the debt.
What does it mean? Restructuring is a change in the terms of payments on a loan in connection with objective changes in circumstances in a person’s life. We give a simple example of a similar situation. Suppose a person has a loan and regularly made payments, but then he is unexpectedly fired, or he is injured and cannot work. Naturally, it is impossible to repay the debt in the current situation, because for delay the penalty will be charged, and the amount will increase more and more.
However, the bank may well issue a write-off of part of the debt if the borrower timely requests to revise the terms of the contract. Most credit organizations have special loan restructuring programs, which provide an opportunity to defer payments for several months or reduce their amount, but at the same time increase the lending period. Lawyers advise resorting to such an opportunity, since the option of partial debt cancellation is not ruled out. Such a solution to the situation is preferable even in the sense that in this case the credit history of the citizen will not be spoiled.
Debt refinancing
However, it should be noted that not all organizations meet the debtors and restructure debt. But do not despair, there is another solution to the problem. You can contact a completely foreign bank, which offers refinancing in the list of its services debt obligations. The bottom line is that you can get a completely new loan from another bank, aimed at paying off existing debt. In this case, you draw up a new contract, which, perhaps, will have milder conditions for you.
Refinancing is convenient when a person has loan obligations to several organizations. This is not entirely practical, since you have to pay a commission in several places.
Partial charge
Writing off part of the debt is possible upon going to court if the borrower cooperates with the bank. At the first signs of debt, credit organizations are also not in a hurry to file claims, this is not very beneficial for them. As a result, a situation arises when a person does not know about additional payments at all. Sometimes banks also do not behave in the most honest way, refusing to review the terms of contracts even if there is evidence of a changed financial situation of a citizen. If the credit department brings the case to court, then you can at least try to write off part of the debt through the court, if there are extenuating facts.Usually, judges, taking into account a person’s desire to pay off debts, are obliged to return only its main part, penalties and fines are subject to write-off.
Debt relief Act
The basis for writing off debts is the state program to support people who are not able to independently repay the main mortgage payment. Government Decision No. 373, which addresses this issue, entered into force in June 2015. True, since then it has been reworked several times.
According to the law, those citizens whose income has changed for objective reasons can take advantage of state support. Or the size of the payment has changed (this is possible with a foreign currency loan). The dollar has grown so much that it is impossible to pay off debts, receiving a salary in rubles.
Change in income
At the moment, the program provides for the possibility of supporting those borrowers whose income decreased by 30% in the quarter preceding the submission of documents for restructuring. Its weak point is the lack of analysis of a person’s income and purchasing power, because the nominal value of income is taken into account, and not what can be purchased with the money received. An additional criterion for assessing a citizen’s solvency is a line that indicates the amount of cash per family member after paying a monthly installment on a loan.
Exchange differences
A very long period of payment of exchange rate differences in foreign currency loans remained a controversial issue. Currently, the law establishes that for those citizens for whom mortgage payments have increased by more than 30%, compared with the period when the contract was concluded, it is possible to provide state support. It lies in the fact that a lower exchange rate is established, it is also possible to partially write off a debt on a mortgage, and reduce the payment amount by half within a year and a half.
Write-off of the main mortgage debt
The owner of a mortgage real estate can apply to the bank where he took a loan to apply for participation in the state program if his situation meets a number of conditions (we will return to them below). Federal assistance provides for write-off of the main debt in the amount of up to 600 thousand rubles. The mechanism may be as follows:
- Currency is converted into rubles at a certain rate, which cannot be more than that set by the Central Bank for the period of signing the restructuring agreement. Moreover, the interest rate after recalculating the amount of debt in rubles in no case may be more than 12 percent.
- Payments are reduced by almost half within a year and a half.
- Write-off of the main debt, or rather, its repayment.
Regardless of which of the above options, the debtor chooses, the amount provided is ten percent of the remaining principal debt, and at the same time is not more than 600,000 rubles.
What to do in each case and what option is better is to discuss with a lawyer who will give the right and right advice.
I would like to note that not all banks participate in this program. Nevertheless, their number in the list of cooperation is constantly increasing. At the moment there are 72 of them there. To find out if the bank where you took the loan is on this list, you need to call the Agency for Housing Mortgage Lending hotline (from 8-800- on the working days from 8:00 a.m. to 7:00 p.m.) 755-55-00). In the original version of Decree No. 373, a restriction was stipulated, according to which those citizens who had a delay of payment of 30 to 120 days could not apply for help. In the new version, this restriction is already absent, and borrowers with or without late payments may apply for restructuring.
Additional options
Even if the borrower's income has not decreased to the necessary level and the loan was taken in foreign currency, a person can still get to write off the entire amount of the principal debt at the state expense if during the loan term he becomes a parent of three children at once. At the budget account, the amount of the market value of eighteen square meters of similar housing is debited at the birth of each child. Thus, even with all the restrictions at the birth of a third child, a complete cancellation of debts of individuals is possible. Such substantial assistance is possible only if you have a complete family, as well as when issuing a certificate of maternity capital, which, in fact, is the basis for writing off the bulk of the debt.
In order to get a decision on writing off the main debt, you need to go through a standard set of procedures: collecting documentation, checking it and agreeing with a pension fund, further transferring funds to a bank account.
The amount of assistance allocated by the state during 2016 to support mortgage debtors in a difficult situation amounted to 4.5 billion rubles. Such help will save many mortgage borrowers. The program, of course, has some drawbacks, but it is constantly being refined and improved.
Debts of individuals
According to the adopted law, it became possible to write off debts of individuals. If a person is unable to cope with the payment of a loan, then he can go to court to recognize bankruptcy. The person is pushed to such a step by the understanding that he cannot cope with payments. An application can only be submitted if there is a debt exceeding fifty thousand rubles and a delay period of three months.
The arbitral tribunal considers the applications of citizens within four months. Next, the person should be declared bankrupt or provide an opportunity to restructure the debt. In this case, the maturity should not be more than five years. The plan for future restructuring is approved by the court and the meeting of creditors.
After the recognition of bankruptcy, accrual of a penalty interest, any penalties for executive documents shall be terminated, the arrest on property shall be canceled. If the debtor does not fulfill the restructuring plan, then his property may be sold by court order to pay off the debts.
Debt relief of individuals
If we talk about writing off debts of an individual, then this is a very complicated procedure, which is accompanied by many difficulties and has its own nuances. The lender retains its rights to collect a debt for a long time, even if it did not present any claims to the debtor at the time of registration bankruptcy proceedings. Therefore, formally, a person is considered a debtor even after being declared bankrupt. However, writing off bad debts is still possible.
All debts can be written off in the event of the death of a person, which leads to the closure of any production regarding him.
According to the law, debts can be recognized as bad and written off. Such a situation, for example, is possible if the court confirms the absence of any possibility of recovery from the debtor due to the expiration of the time period in which this can be done.
Legal advice
In the event that you have a loan debt, it makes sense to consult with lawyers, maybe they will tell you the most correct solution specifically in your situation.
If it comes to small consumer loans, then there are several options for the development of events. The bank may well agree to an agreement in which you will have to pay the remaining amount for a certain period. In this case, you can try to agree on the abolition of interest and late fees. This option is sometimes preferable to credit organizations.
Also, if you have a good lawyer, you can try to beat off part of the debt.In such cases, professionals have a set of weighty arguments for court hearings: lower incomes, inoperability, having a child, and many others. In addition, the court can review the amount of illegally accrued interest or an increase in the interest rate. But it should be borne in mind that the work of the lawyer in this case will also cost the debtor a lot of money.
You can try to defend your innocence in court on your own, but this is associated with ignorance of many legal subtleties. Most likely, you will not be able to receive a resolution on writing off the main debt.
Lawyers advise for the period while you are engaged in litigation, try to freeze the debt, citing the invalidity of the contract for some reason. It is also possible to file a lawsuit with the court to terminate the loan agreement in connection with the changed circumstances. Such actions will help you gain time.
Instead of an afterword
Writing off doubtful debts is not an easy task. Of course, it is better not to fall into situations in which the issue of debt repayment is urgently raised. However, if after all such a nuisance happened to you, it is better not to delay the process and begin to act immediately, finding the right solutions. This is what lawyers recommend. And remember that sometimes it is possible to write off part of the debt, you only need to know about it and use this chance correctly, even if it will be an exception to the general rule.
