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.

Group debts with mortgage: main advantages

Do you know what is the grouping of debts with mortgage ? What do you know about reunifying debts? What are the advantages of performing this type of credit pool ? Nowadays it is increasingly common to hear our relatives talk about this type of procedure, but do you know what exactly the reunification of loans is? Do not panic! It is very simple, a grouping of debts basically consists of unifying all the debts that we have pending in a single installment.


What exactly is grouping debt with mortgage?

debt with mortgage?

We explain it to you better through a practical example; imagine that Laura has to pay her mortgage, the car credit and, finally, the loan to buy the kitchen furniture. The sum of all these credits implies a high expense, while when grouping debts , the monthly installment will be less than the sum of all debts separately.

As you have been able to read, the main advantage of grouping debts is the payment of a single fee, but in addition, there is also the great advantage that this fee is lower. This is an ideal solution when we observe that the debts are overwhelming us and we need a break to reach the end of the month.

In this post, we are going to tell you what exactly to reunify debts with mortgage .


Who is responsible for reunifying mortgage debts?

mortgage debts?

Although the reunification of debts can be processed in your financial institution, there is an inconvenience, they can only group the debts that you have contracted with them. If you have various debts contracted with different financiers, you will have to go to a negotiating agency .

The negotiating agencies , such as Pardillo Consultores , will be in charge of reunifying all your loans that you have contracted with different banks in a single installment. Therefore, first analyze what type of credits you have and with what financial ones. And of course, the negotiating agencies will help you process the mortgage debt pool .


How does grouping debt with mortgage work?

How does grouping debt with mortgage work?

Nowadays, reunifying mortgage debts is the most used method. Why is it the alternative that most people turn to? This is because mortgages, as a rule, offer more favorable conditions to the debtor than any other type of credit. It is a perfect option to qualify for better payment terms.

Another aspect that many banks take into account to grant debt reunifications are the monthly income of the client, as well as, whether or not it belongs to lists of delinquents such as ASENF or RAI. In the case of the reunification of debts with mortgages in a negotiating agency, this would not matter.


What expenses does canceling the credits entail?

What expenses does canceling the credits entail?

When making debt pooling , we must first cancel all outstanding loans we have. The cancellation of these credits entails a series of expenses that the applicant will have to face.

The grouping of debts also means formalizing a new mortgage contract. And as a new mortgage contract, the applicant for the reunification of loans must pay the commissions of opening, appraisal of the property, tax of Documented Legal Acts and the notary’s fees. However, these expenses will be quickly compensated by the large monthly savings the debtor will experience.


Should I do the debt reunification?

Should I do the debt reunification?

It all depends on the type of debt that is incurred, your employment status, financial status of the family nucleus, type of loans and the amount of debt.

As a general rule, the reunification of debts is ideal for those families who are going through an economic downturn and need to be more relieved with their monthly bills. One of the great advantages of reunifying mortgage debts is that, by unifying the monthly installments, these are grouped into one. In addition, this single monthly fee has a lower amount than the total debts separately.

However, not all are advantages, it also has its drawbacks. Although in this case there is only one drawback in this type of debt grouping , which is that by reducing the monthly payment, the debt time increases.

Are you considering grouping debt with mortgage ? If your answer is yes, contact us. From Pardillo Consultores , we will advise you in all your doubts about the debt grouping , always offering you the best conditions in your debt grouping . Find out without any commitment!