What are the consequences of evading obligations?
Posted: Tue Feb 18, 2025 9:51 am
Refusal to satisfy the creditor's demands is fraught with negative consequences:
He may impose penalties as provided for in the contract.
It is possible to collect the debt through legal means, which will increase the amount of the debt by the amount of legal costs and other expenses of the creditor to collect the debt. As part of the forced collection procedure, the bailiff can seize property, block bank cards, prohibit travel abroad, limit the right to dispose of funds, and appoint a deduction from wages until the debt is fully repaid.
Deterioration of your credit history and possible problems with obtaining your own credit in the future.
It is impossible to unilaterally refuse to perform the contract. The only way is to agree with the creditor on termination by mutual agreement. But this requires the consent of the other party. The bank is armenia mobile database unlikely to agree to terminate the contract, which serves as security for the credit transaction without providing other guarantees. One solution to the problem is to find a new guarantor.
But there is a chance to get back the funds paid. If you have paid off the debt for the borrower, then in this part you become his new creditor. This means that you have the right to demand full compensation for your expenses, including through legal proceedings.
What to do if claims are made
The simplest advice is to pay off your debts as soon as possible. But, unfortunately, it does not always work.
What to do if there is no possibility to pay off the creditor immediately:
First of all, contact the debtor, find out the reasons for the delay and try to convince him to pay off the debt. If he has temporary financial difficulties, you can agree to pay off his monthly payments during this time, so that there are no delays and penalties. And when the situation improves, he will return the money to you. But do not forget to formalize this with a loan agreement in writing. Otherwise, it will be problematic to prove that you paid the money for him.
If the debtor has serious financial difficulties, it is better to contact the bank directly, explain the situation and ask for a deferment. Credit holidays are a good option for resolving temporary problems, without involving bailiffs and without large fines.
He may impose penalties as provided for in the contract.
It is possible to collect the debt through legal means, which will increase the amount of the debt by the amount of legal costs and other expenses of the creditor to collect the debt. As part of the forced collection procedure, the bailiff can seize property, block bank cards, prohibit travel abroad, limit the right to dispose of funds, and appoint a deduction from wages until the debt is fully repaid.
Deterioration of your credit history and possible problems with obtaining your own credit in the future.
It is impossible to unilaterally refuse to perform the contract. The only way is to agree with the creditor on termination by mutual agreement. But this requires the consent of the other party. The bank is armenia mobile database unlikely to agree to terminate the contract, which serves as security for the credit transaction without providing other guarantees. One solution to the problem is to find a new guarantor.
But there is a chance to get back the funds paid. If you have paid off the debt for the borrower, then in this part you become his new creditor. This means that you have the right to demand full compensation for your expenses, including through legal proceedings.
What to do if claims are made
The simplest advice is to pay off your debts as soon as possible. But, unfortunately, it does not always work.
What to do if there is no possibility to pay off the creditor immediately:
First of all, contact the debtor, find out the reasons for the delay and try to convince him to pay off the debt. If he has temporary financial difficulties, you can agree to pay off his monthly payments during this time, so that there are no delays and penalties. And when the situation improves, he will return the money to you. But do not forget to formalize this with a loan agreement in writing. Otherwise, it will be problematic to prove that you paid the money for him.
If the debtor has serious financial difficulties, it is better to contact the bank directly, explain the situation and ask for a deferment. Credit holidays are a good option for resolving temporary problems, without involving bailiffs and without large fines.