By contracting a personal loan, as a general rule, you are sure that you will be able to face the debt month by month. But sometimes, unexpected situations are experienced, such as a layoff or perhaps the illness of a family member, which makes it impossible to meet the budgets that were planned.
When this happens, it is not necessary for him to live with a start, avoiding picking up the phone for fear of recoveries or ‘like the ostrich’, with his head buried to try to flee from the problems.
What does it mean to be a loan holder?
There are solutions of plaintiff funding by Baker Street funding, in the event that a debt cannot be paid, but it is important to know, before contracting a personal loan, what it means to be the holder of one.
To begin we must know that the loans have a personal guarantee, that is, when contracting a loan Baker Street funding offer to guarantee all your present and future assets. That is why, in a situation of default extending, a judge, at the request of the financial or credit institution, can give a sentence to seize our assets.
The most common is usually the bank account and the part of the payroll or pension corresponding to the inter-professional minimum wage, but if the amount of the debts is high, we can also seize the car, the house, and all those goods that they believe necessary to pay Debt.
In addition, if someone has guaranteed us the loan, the person who has done so will also have to take care of the debt, since the guarantor jointly agrees to take over the repayment of the loan, so if we can no longer pay the installments and we do not have sizable assets or these are insufficient, the guarantor has the obligation to pay the debt and if necessary it can also be ordered to seize their assets.
You are already delinquent
On the other hand, when a debt is no longer paid, it is registered in a file of defaulters, highly consulted by financial and credit entities when granting a loan, which will practically make access to financing in the future. In order to stop appearing in the defaulters file, we will first have to cancel the debt and ask the entity to make us a certificate as we have paid and then send it to the defaulters file in which we were registered to be erased.
Another important fact to know is that from the first installment that is not paid, the entity will charge default interest, normally much higher than ordinary interest, as well as it can charge a commission for claiming unpaid payments or fees. Both interests accumulate on the original debt, which will mean that more money will have to be paid in the long term.
These are priority expenses
Thus, we see how the non-payment of a loan can cause serious problems, so it is important that in the planning of monthly expenses, the payment of debts is a priority over other expenses. In the face of an economic problem, you should never think about the non-payment of debt as a solution, since in the future it will bring us not only greater economic problems but also severe headaches.
And if for any reason we cannot pay the loan installments, before the installment expires, the most advisable thing is that, without fear or embarrassment (most people, at some point in life, go through difficult economic situations), we go to our entity to explain our case.
You can declare insolvent
The only other possible alternative to face the default of debt is to declare insolvency. The thing that from the modification of the law firm attorney, natural persons can do, in a process very similar to that of legal persons. A law firm process has to be held, whereby the claims filed for non-payment are paralyzed and the possibility of seizure is frozen until the process is completed.