What happens if credit debt is not paid? – What is the Legal Process?

There are certain deadlines that credit debts have to be paid legally. Banks have the right to enforce various sanctions when payments are not made within these periods. When signing various documents during the loan application process, individuals accept this situation and cannot claim any rights later.

What happens if credit debt is not paid? For those asking, it should be said that banks first went to downgrade their credit ratings. Legal follow-up processes will start if the payment is not made for a certain period of time.

What is Legal Tracking?

What is Legal Tracking?

If the loan debts are not paid, the banks continue to decrease their credit ratings for a certain period of time. Banks subsequently initiate legal proceedings as a last resort if people continue to refuse to pay monthly terms.

Legal follow-up is known as being a lawyer among the public. Banks transfer all transactions to lawyers in this process. A final debt configuration is drawn up through lawyers and you are asked to pay the money within 1 week. If this call is not answered, banks may apply for a lien.

How Many Days I Do Not Pay My Credit Debt Legal Tracking Begins?

Legally, banks cannot apply for legal proceedings directly. Here, a certain amount of time has to pass and the relevant legal deadlines have to expire. In order for legal proceedings to begin, individuals must not have paid the bank in any way for 3 months (90 days). If the debt delay is below this period, banks will not be able to apply for legal proceedings.

If I Don’t Pay My Loan Debt, Will Foreclosure Come?

If I Don

The last sanction applied by banks due to their unpaid credit debts will generally be foreclosures. Legally every bank has the right to apply foreclosures due to unpaid debts. This situation is clearly stated in all loan agreements. Of course, there is no direct initiation of lien.

First of all, only your credit score is reduced for a certain period of time. Legal proceedings then begin, and a final warning is drawn to you through lawyers. If you do not respond to this warning, foreclosure begins. However, the foreclosure application can only be done in the households that are legally registered to you. In addition, if there is a guarantor in the loan, a foreclosure process begins for that person.

Is there a prison sentence for credit debt?

Is there a prison sentence for credit debt?

Consumer Laws contain very sharp items that protect the rights of citizens regarding credit card debts. According to the article stated here, no citizen can be imprisoned for his credit debts. In this respect, it is not even possible to get this kind of punishment because of the debts.

However, an exception should be mentioned here. If you still do not pay after signing the payment plan that the lawyers sent to you during the legal proceedings, this could result in imprisonment. For this reason, if you do not have the power to pay the debt, do not sign the documents submitted by lawyers in legal proceedings.

How Do I Pay My Credit Debt?

Various facilities have been created recently to cover credit debts. Debt structuring comes first. If your debt in a bank has increased considerably, contact the bank to request a configuration. In this case, instead of paying the entire debt, you pay in monthly terms. However, it should be said that banks do not respond positively to every configuration request.

At this stage, your willingness to pay back is very important. Apart from this, we can say that some banks lend loans. It will be possible to close your debt in one bank with a loan you will receive from another bank. However, for this, the credit registry should not be too bad. Blacklisted people or people who eat red pens from banks will have a hard time getting loans closing loans.