Consumer bankruptcy as a way to pay back the loan

This saying is reflected in the issue of loans and advances. Mortgage loan for an apartment, cash loan for a car, online loan for television and another payday loan for a trip abroad, and then another loan for repayment of installments of previous debts – it is not difficult to fall into a spiral of debt.

However, it should be remembered that if the debtor leads to insolvency or significantly increases its degree intentionally, or as a result of gross negligence, the court dismissed the application for a declaration of consumer bankruptcy. And this is one way to get straight after a period of significant financial problems.

Consumer bankruptcy is a way to pay back loans online

Consumer bankruptcy is a way to pay back loans online

Many people have long wondered whether 24/7 online loans are a safe way to get cash, but sooner or later they are reaching for it anyway. The ease of obtaining them and full freedom in managing cash means that we take them often and for any reason. After all, there is no better way to finance small expenses than an online loan.

And this is a simple path to destruction and the beginning of a spiral of debt. An unpaid cash loan is a good reason to take another loan. However, this is no way out of the stalemate – the debt is growing and we cannot afford to pay it back. Consumer bankruptcy may be a much better solution.

Taking such a step is for many a difficult decision, even a last resort, but not always directly due to the debtor’s fault. Taking further cash loans online will not solve our problem in any way (learn the pros and cons of online loans), on the contrary – it will aggravate our troubles.

Therefore, when for various reasons you are no longer able to pay your debts, it is possible to apply for insolvency proceedings.

Online loan repayment thanks to bankruptcy – how does it work?

Online loan repayment thanks to bankruptcy - how does it work?

You may be wondering now what consumer bankruptcy is and how you can declare it if you are not running a business. We are already in a hurry to answer. The consumer bankruptcy idea is that instead of individual litigation and enforcement leads to the accumulation of creditors’ claims in one proceeding.

Then, all or part of the debtor’s assets is liquidated (sold) to satisfy creditors’ claims. As soon as bankruptcy is declared, the debtor loses the freedom to dispose of the assets he has accumulated.

Who can file for consumer bankruptcy? It is provided for natural persons, i.e. those who do not run a business, and their material status does not allow repayment of loans and credits previously drawn. Permanent insolvency arises due to the lack of repayment of current liabilities, however, it must last at least three months.

It remains to answer the question of how to declare consumer bankruptcy. All you have to do is fill out and submit an appropriate application to your local district court. The cost of submitting such an application is USD 30.

At the time of declaration of bankruptcy, the calculation of interest ceases, and therefore our obligations cease to increase automatically.

What happens to an online loan after bankruptcy?

What happens to an online loan after bankruptcy?

This is another question that arises before the decision to declare consumer bankruptcy. It should be emphasized right away that the declaration of consumer bankruptcy will not make every cash loan or loan magically disappear. As already mentioned, the debtor’s assets will be cashed and sold for debt repayment.

A special case is a mortgage in which the mortgage continues, even despite the declaration of bankruptcy. It seems, therefore, that an online cash loan without certificates is a good way to solve financial problems, but this is just a pretense. As a result, it will only increase our debt and make it difficult, and in extreme cases even impossible, to go straight.

In addition, taking a cash loan without certificates exposes you to gross negligence and inability to insolvency proceedings, it is worth remembering.

Bills of exchange between individuals: 5 tips to follow before signing a loan.

The first thing you need to do

The first thing you need to do

When you need a loan, large or small, the first thing you think about is to ask a bank or a financial one. Very often, however, not all the requisites required by a financial institution to fulfill the payment of the installments are met.

These requirements may relate, for example, to what you have (an open-ended contract, demonstrable pay slips, ascertained income, presentation of a guarantor, etc.) or previous conduct with other loans. In the latter case, in particular, if you are protested or entered by the Crif in the bad payer registers, you will not get a loan from a bank so easily (with some exceptions).

So what to do? The solution could be that of loans exchanged between private individuals, who see two private individuals as protagonists, both on the creditor’s and debtor’s side. However, what differentiates these loans from a simple personal loan is that they are gradually extinguished through bills of exchange.

If you are interested in this type of loan, here are five tips not to go wrong.

If you are interested in this type of loan, here are five tips not to go wrong.

    1. Contact an absolutely trusted person

      Let me be clear, it is not a question of dictating absolute rules, but in general the first advice that can be given to those who are about to apply for a loan changed by a private individual is to contact a trusted person, with whom they are linked by a sincere relationship of esteem, friendship or kinship. This will ensure that no surprises arise, especially in terms of collection. It is clear that since the bill of exchange is an executive debt, it secures the creditor, who will still be able to collect his debt, but less the debtor, who will also be able to have his assets seized.

    2. If you are looking for the lender online, consider the risks well

      As with all aspects of life that surround us, loans changed between individuals can also be found on the web. There are in fact special blogs that collect the requests of those who need a loan and put them in contact with the offers of the lenders. If you choose to follow this possibility, be careful to carefully evaluate each risk and ensure that you are faced with a serious lender. Then there is the distance to consider, for the collection aspect: if you live in Rome, what sense does it make to accept a relationship with a lender or debtor who lives in Palermo, or Milan?

    3. Attention to the request

      When applying for a loan promoted by private individuals it is true that there are no limits on figures, but it is also true that what cannot be repaid will be foreclosed by the creditor. It is therefore appropriate to reserve this method of credit for situations of real need.

    4. Punctuality in payments

      These loans are often disbursed in cash, delivered directly by the creditor to the debtor, also at home (see Loans exchanged at home). The latter undertakes, precisely through bills of exchange, to settle the debt by a certain date. Once the debt has been paid, the bill of exchange is returned, which at that point will have the value of a receipt. It is important to be punctual in payments: the protest, in fact, starts after being certified by a public official, notary or bailiff and immediately becomes executive.

    5. Formalize the loan

      Finally, if you are on the side of those who lend money using the bills method, the loan should be sealed by a private agreement. In this way the lender formally undertakes to grant the sum of money and the debtor to pay all bills.