Many loans do not allow us to fall asleep, we wonder every day how to solve the problem of unpaid debts. Only Consumer Bankruptcy comes to mind.
It is indeed an ideal solution for people who have lost financial liquidity. However, what conditions must be met to be able to announce it? Will bankruptcy actually remove all debts?
A solution for (not) everyone
Many still think that if they do not like the current repayment terms, they can “cancel” it by announcing Consumer Bankruptcy. Nothing could be more wrong! Mediation works best here.
It will allow to negotiate better repayment terms – after all, it is a solution for those who are paying, and high installments only strain their budget. Bankruptcy is the final solution. He saves those who are in debt that they cannot pay back, e.g. if their health prevents them from taking up a job and thus prevents them from obtaining money to pay it back.
Certainly, those who regularly pay their debts cannot count on bankruptcy
Since March 2009, Consumer Bankruptcy has been available to natural persons who do not run a business. Initially, it could only be announced by those whose insolvency arose as a result of independent and exceptional circumstances. In addition, the debtor’s insolvency could not be caused by dismissal (due to the debtor’s fault or with his consent).
At present, the conditions to be met have been eased – two are required to be able to declare bankruptcy: 1. Insolvency – A debtor is considered insolvent when he is unable to pay his due obligations. 2. Positive payment morality – it is the court’s responsibility to analyze the debtor’s application in terms of payment morality.
What is? This is a source of financial problems. The court checks whether the debts were caused by willful misconduct or gross negligence on the part of the debtor, or whether he significantly increased his insolvency. If the debtor has not intentionally defaulted, he has a good chance of canceling all his obligations.