If the borrower stops making payments, the bank acts as follows:
Trying to contact the borrower and find out why payments have stopped.
If the borrower does not get in touch, the bank can immediately go to court or assign the debt to a collection agency.
The collector first notifies the borrower about the change of creditor and tries to reach an agreement out of court. If the borrower refuses or hides from the collector, he goes to court.
Bailiffs can seize accounts and seize property. Typically, the court will do one of two things:
Settlement agreement. The borrower and the creditor enter lebanon mobile database into a new agreement under which the debt must be repaid. Its terms may differ from the original agreement. For example, the creditor may agree to reduce the amount of payments by extending the debt repayment period. There are situations when a reduced interest rate is applied under the new agreement. In some cases, it is also possible to reduce the amount of debt. But there must be good reasons for this: for example, too little income combined with a very large amount of debt.
Bankruptcy of the borrower. The borrower can be declared bankrupt if he has no income and property to repay the debt. It happens that there is property (for example, a car), but its value does not cover the debt in full. In such situations, the property is first seized and sold, and then the borrower is declared bankrupt. From this moment on, he no longer owes anything to creditors.
Litigation has an extremely negative impact on your credit history. It will be very difficult to get a new loan later. Even if banks agree to issue a loan, the terms will be extremely unfavorable.
To avoid going to court, you need to notify the creditor in advance that you have difficulty paying off your debts - preferably before you make your first late payment. Explain the situation and ask for concessions. The bank may offer credit holidays, debt restructuring and other ways to reduce the debt burden.
Liability of spouses in enforcement proceedings
All property acquired during marriage is considered jointly acquired. Therefore, in court proceedings, spouses are indirectly responsible for each other's debts: they risk losing part of their property.
Bailiffs act in the following order:
The borrower's personal property purchased before the marriage is seized and sold.
If the proceeds are not enough to cover the debt, the borrower's share in the common property is seized. This happens even if the property is registered to the spouse but was purchased during the marriage. The husband's share is 50%.
The wife's personal property is safe, but it must be proven that it was acquired before the marriage.