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
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?
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?
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.