The borrower’s loan obligations imply that he must repay the amount of the debt along with interest. Banking contracts created by professional lawyers take into account all the risks associated with non-payment of debt. And in most cases, customers who make out a loan do not plan that the money will not be returned. But force majeure circumstances are not taken into account, when a situation arises, if there is nothing to pay. In this article we will look at how not to pay your loan officially, whether it is possible at all and what the consequences may be.
All legal ways to avoid paying a loan
We think that every reader will agree that if it were so simple, then the crediting market would not exist in principle. Borrowers would take a loan and find legitimate ways not to pay the debt to banks. Then the banking companies would be simply unprofitable to provide such services.
Unfortunately for borrowers, the law in this regard stands on the side of financial institutions. In Russia, it is regulated by the Civil Code, but nevertheless there are certain alternatives, how not to pay a bank loan under the law, if you use the approach correctly.
If we talk about not paying the loan at all, you can use the following options:
- Bankruptcy procedure. Recognition of the status of a bankrupt has very negative consequences, but thus frees him from paying a bank loan.
- Challenging loan agreement. Here it is worth to enlist the support of lawyers, and if the documents are not properly signed and contradict the current legislation at the time of signing by the parties, then there is a chance to recognize the loan as invalid.
- Insurance compensation. Many people underestimate the possibilities of insurance policies. After all, upon the occurrence of an insured event, the company will fully repay the debt to the lender.
- Limitation of actions. The limitation period is 3 years from the moment the debt was incurred. A rather dubious idea, because even if somehow the bank does not sue during this period and does not force it to pay the debt on the writ of execution, so that the limitation period has expired, it is necessary not to contact the bank specialists in any way, that the client does not imply about the existence of debts.
More real things are that you can get payment benefits, stop fines or penalties, installment payments and other conditions that the bank will go to just to avoid the courts and get money back:
- Negotiations with the bank. A banking organization no less than a borrower is interested in negotiations and compromises to solve a payment problem.
- Credit holidays. A service that allows you to not pay debts for some time, for example half a year, or pay only the loan body without interest, which leads to a decrease in monthly payments for some time.
- Restructuring. The procedure for increasing the term of the loan, which leads to a decrease in monthly contributions.
- Refinancing. Agreement with another bank on more favorable terms, which undertakes to repay the debt of the borrower.
It is worth noting that all the provisions on non-payment of debt are formulated in individual conditions under a loan agreement or in general, which must be made publicly available, for example, on the bank’s website or in company branches, and provided at the request of the client.
Try to negotiate with the bank
One of the right decisions in a situation where there is no possibility to pay the debt is to try to negotiate with the bank. This cannot be attributed to the legal way of not paying the loan, but this option will temporarily ease the financial burden.
In the case of overdue debts, bank specialists contact the borrower by phone call. It is necessary to notify the manager of the temporary circumstances related to the impossibility of payment, and to find a common solution in order to make payments in installments.
The bank can meet and provide for the restructuring of arrears, including stopping the charging of fines. If you cannot find such a solution in the form of a phone call, then we recommend heading directly to the office for writing the appropriate application.
In the appeal, it is necessary to clarify the information about the deterioration of the financial situation and to support the data with documents. A copy of the employment record with a record of dismissal or an extract from the account where the salary is received, which will reflect the information that income has declined, will do.
Based on the application, various solutions can be proposed, one of which is restructuring the contract in favor of lowering monthly payments. It is also possible to provide credit holidays or a temporary possibility of paying off only the loan body. Thus, it is possible to legally avoid litigation and the possible arrest of accounts and property.
Challenge the loan agreement
This option involves the complete abolition of payments on consumer lending. After all, if the loan is canceled, then you can not return the money at all to the bank.
To do this, it is necessary to file a lawsuit in court, and prove in court that the contract was executed with violations. In practice, such decisions in favor of borrowers are possible. For example, if a banking client is incapable and does not have the right to enter into financial agreements with banks.
Also, lawyers can find obvious violations in the contract itself, which are contrary to the law. For example, if the parties did not agree on the use of facsimile printing, and the text of the contract implies the official seal and signature of the responsible persons, which was not done in a specific document.
Another way of not paying interest on the loan and not returning the money at all is to prove that the lending service was imposed, and pressure was put on the borrower, under which he was forced to sign documents.
There are few prospects for litigation, but experienced lawyers can help get a decision in favor of the borrower.
Use insurance policy
You can use an insurance policy for several purposes. The main thing is to receive the insurance payment upon the occurrence of the insured event. To do this, we recommend that you read all the terms and conditions of insurance contracts that were associated with the loan.
Insurance coverage for loss of employment insurance is the case of dismissal of an employee. The insurer undertakes to pay money in favor of repaying the debt for a specific period in the amount of monthly payments. Also, possible fines and penalties can be paid from the insurance account.
There are other insurance that can come to the aid of force majeure. such as:
- life and health insurance contracts;
- consumer protection;
- financial risks of the borrower;
- protection of property, property rights and other insurance.
Another application of insurance is its early termination. If the terms of the insurance provide for the return of the insurance premium, then this money can be used to pay off the debt. But it should be borne in mind that then the insurance coverage is no longer valid.
Wait for the limitation period
The limitation period is 3 years. This is the period when the possibility of filing a lawsuit ceases on a legal basis, the countdown begins with the appearance of overdue debts.
During this time, the bank may apply to the court or transfer the loan on the cession to the collection agency. Transfer of rights to collectors is possible only under the condition that this provision is provided for by the contract.
A possible problem for this period of 3 years may be that the banking company deems that the borrower intentionally evades payment of money, and will file an application for a criminal case under the article of fraud.
But most often it concerns lending for amounts that exceed 1.5 million rubles. If the debt is less, then the criminal case will most likely not be initiated, but obligations to pay the debt in court will arise.
After the expiration of the limitation period of the loan can be forgotten. But in the future, taking into account the damaged credit history, other banking companies will not work with such a borrower.
Initiate bankruptcy proceedings
Declaring himself bankrupt, the client is exempt from making money on loans. The property is being valued by the financial manager, and debt obligations are settled by selling valuable items.
The bankruptcy procedure begins with a petition to the court to declare the status of a bankrupt. Further events develop as follows:
- the court accepts the application if the total amount of the debt exceeds 500,000 rubles, and the delay on loans is more than 3 months;
- arrest on property and valuables;
- within 6 months, the sale is made in favor of the lender;
- if the amount is insufficient, then the rest of the debt is forgiven.
It should be borne in mind that if you hide property, money, create promissory notes or rewrite the property of friends and relatives, this is regarded as fraud.
Guarantors Debt Requirements
If the banking organization fails at the initial stages to receive money from the borrower, then it will turn to the guarantor. The guarantor is solely responsible for paying the loan to the same extent as the client himself.
This is one of the options, how you can not pay loans, because the borrower really leaves the loan, and it will not be required to return the money, but you still have to pay, only the guarantor.
The need to delay
The circumstances may be different: dismissal from work, reduction, deterioration of health, delays in the payment of wages. To anticipate all the events in advance is problematic.
And the bank fully understands this, and is ready to cooperate with debtors in order to restore payments under the contract. Deferred payment is provided on the basis of a written application with supporting documents.
This service is called “credit holidays”. All borrowers can count on the program, but it should be understood that this is not the obligation of the banks, but only their right, which is not regulated by the terms of the agreement. But in difficult financial situations, you can try to ask for help from your lender.
How not to legally pay a mortgage
Mortgage agreement is a type of consumer lending. Its peculiarity lies in the fact that the bank receives as a mortgage an apartment owned by the borrower. In case of non-payment of the debt, the financial institution can realize the pledge in favor of debt repayment, but on condition that this is not the only housing of the client.
Ways of possible avoiding the payment of debt on mortgages are not much different from the options that were given in this article. One of the features is title insurance, when a purchase and sale transaction is invalidated due to legal violations. For example, if one of the owners of the selling party did not know about the sale of real estate and does not agree with it.
In this case, the insurer will pay damages, freeing the borrower from credit obligations. But it is not worthwhile to engage in such operations purposefully, since in the event of a collusion between the parties, it is possible to initiate a criminal case.