As long as these numbers concern someone else, you don’t think much about them. But once you try it on yourself, the question becomes relevant: what will happen if you don’t pay the loan? What could be the consequences? Is it possible not to repay a loan legally?
Let us immediately note that it is almost impossible not to pay the loan and get away with it in 2017. A borrower with overdue payments will face persistent and harsh reminders, unpleasant communication with, and then a trial and debt collection, often with the simultaneous seizure of property owned by the debtor.
However, with a sound approach to dealing with your debt, there are more acceptable options, which will be discussed below.
The banking community keeps unofficial statistics, numbering dozens of reasons that citizens use to explain their refusal to make payments. Let us highlight two main ones.
Reason #1: Declining income of the population
In the first 7 months of 2017 alone, real disposable incomes of Russian citizens decreased by 1.4%. And in just the last 3 years, according to the Higher School of Economics, the average Russian has lost about 20% of his income.
This factor had the greatest impact on those who took out a car loan with a large monthly payment. It is especially difficult for those who suddenly lost their jobs - due to layoffs, conflicts with management, illness or other equally sudden circumstances.
The same applies to a reduction in income due to maternity leave or retirement. If a person had no savings, but had loans, an unexpected loss of a source of income immediately leads to arrears. Or to new debts.
According to the National Bureau of Credit History (NBKI), every second consumer loan is taken out to repay previous loans.
This does not solve the problem of the lack of constant cash flows, and the borrower plunges into an even greater debt quagmire.
Analysts from the United Credit Bureau claim that 21% of chronic defaulters have 2 loans, 19% have 3. The average debt of people who stop making monthly payments is 750 thousand rubles. Every tenth potential is the owner of a car loan in the amount of over 980 thousand rubles.
Most debtors who have lost part of their income are conscientious: as soon as they have money, they immediately resume payments. Such people themselves initiate and try to come to an agreement with the bank, whose managers often meet halfway.
Reason #2: Deliberate evasion of payment
Of course, the story circulating on social networks about how residents of either Yakutia or Chelyabinsk refused to repay a loan to a bank on the grounds that its founders were foreign companies, and allegedly repaying the loan would be financial assistance to a foreign state, is fake.
In fact, the loan is returned to a legal entity registered in the Russian Federation (foreign banks in our country do not have the right to lend to individuals). But this example illustrates well how inventive those who obviously did not intend to repay the borrowed funds can be.
Here's another typical story: an entrepreneur from Tomsk with a 12-year good credit history in the summer of 2013 decided to buy a local water tower from the mayor’s office and reconstruct it into a residential building. I took out several consumer loans at high interest rates. I sincerely believed that after the work had been completed, the tower would become a good object of collateral, and interest rates would be reduced.
A year and a half has passed. It turned out that the initial calculations were wrong, and a lot more money was needed. I took out a couple more loans - just at the beginning of 2015, after the pandemonium with the dollar exchange rate and the subsequent jump in rates on ruble loans. When there was not enough money for monthly payments, the man decided to go into debt with friends and even took out microloans - just so as not to ruin his credit history.
As a result, he found himself the owner of eight loans at the same time, which he had absolutely nothing to pay off. Banks refused to accept architectural rarities as collateral and lower interest rates. And the entrepreneur stopped paying.
Now he is sure that this should have been done earlier - then there would have been no fuss with microfinance organizations and related problems. Slowly he began to repay the debts of the microfinance organization, and expects to get access to bank loans in a couple of years at the earliest. At the same time, he does not deny himself anything, and continues to reconstruct the tower.
What threatens the debtor: myths and reality
One of my acquaintances - a serious person, a former director of a large organization - is mortally afraid of defaulting on a mortgage loan. He is absolutely sure that immediately after this, riot police will come to take away the apartment, and he will immediately be sent to a colony.
Many people think so, but in fact, banks are much more loyal even to problem borrowers. obliges every credit organization to have regulations for working with debtors, which do not provide for soldering irons or even night calls.
For any bank, a sharp increase in the number of “bad” loans means the need to increase reserves, reducing. Therefore, in most cases, the credit institution is no less interested in you repaying the debt. There are programs for this.
But be prepared for the fact that no one will babysit you. For you, these are your one and only loans, and every fifth bank manager has such loans. Therefore, if you fail to fulfill your obligations on time, get ready for unpleasant consequences.
Consequences of non-payment of a loan
First stage: pre-trial
As long as the bank is handling your debt (and this usually happens during the first 90 days of delay), you don’t have to worry too much: the matter will not go far beyond the law and human decency.
Legal actions of banks in case of late payment of loan payments
- At the first delay - an SMS, a call from a bank representative with a reminder, an email with an offer to pay off the debt.
- (without your permission) debiting the overdue amount from your account at the same bank. This method applies only if it is specified both in the loan agreement and in the deposit agreement.
- Request for payment from the co-borrower/guarantor/guarantor (if any). Some banks, when concluding an agreement, require you to indicate from one to three telephone numbers of friends or acquaintances - they will also be informed about your debt and will be asked to influence you.
For the most part, the methods listed refer to mild psychological influences. They are aimed at law-abiding borrowers who have found themselves in an unpleasant life situation and will try to pay as soon as possible. Often banks cross the line and begin to promise measures that they have no right to implement.
Actions of banks not supported by legal grounds
- A promise to prosecute the client under the article “Fraud”. Here you must clearly understand that there is no breach of trust in failure to fulfill the loan agreement (this is what constitutes fraud). If you took out a loan using your own original documents, your actions do not fall under Article 152 of the Criminal Code of the Russian Federation; there is no judicial practice in this kind of cases.
- A promise to list and auction your property to pay off a debt. Remember: the bank does not have the right to perform any actions with the client’s property (except for what is pledged). So are collectors. This is the exclusive prerogative of bailiffs. And then - after an appropriate court decision and with restrictions, which will be discussed further.
- Promise to terminate parental rights. The most delusional threat. Only the guardianship authority has the right to carry out such an action if parents or guardians cannot properly support and raise their children. The bank is not children; loan arrears have nothing to do with family relationships.
At this stage, under no circumstances should you hide from the bank. The best option is when you contact a credit institution before any delays occur. We lost our job and went to the bank the next day.
As long as you are not burdened with a documentary burden of unmade payments, managers will perceive you as a solvent client with temporary difficulties. It’s not a sin to increase the loan term and reduce monthly payments.
How to communicate with a bank representative:
- You should always pick up the phone when you receive a call.
- First of all, check the first and last name of the interlocutor - often bank databases are “merged” with dubious companies that try to fraudulently lure money from borrowers. After the conversation, it wouldn’t hurt to call the bank’s hotline and find out if such an employee works.
- If technically possible, record the conversation.
- Try not to react to the rude tone of your interlocutor. Invite him to calmly state his claims, clarify the amounts and terms of the debt.
- Try to find out whether this employee is related to the department in which you took out the loan, or whether he is a bank security officer who is only authorized to convey to you information about sanctions for late payments. Just listen to the second one, ask the first one when you can come to the bank to restructure the loan.
- It is better to take a philosophical approach to direct threats and accusations: you yourself understand that you have violated the contract, and the bank has no right to do anything illegal to you. You will only lose money if you pay for it yourself; the property will remain with you.
Second stage: court or collectors
After waiting 90 days, the bank decides to move forward with your case.
There are two options: either the proceedings regarding non-payment of the loan will continue in court, or you will have to deal with a collection agency if bank analysts consider it more profitable to include your debt in a package of difficult-to-collect debts and sell them at a discount to collectors.
This happens if the client does not own serious property for possible sale at auction (cars, real estate, and so on).
This scary word for debtors has often been heard in recent years.
In April 2016, several masked men broke into an apartment, where they beat the owner, his 17-year-old son and raped his wife. So they tried to “collect” a debt of 5 thousand rubles, overdue for a year, taken out from the Dengisrazu company.
In February of the same year in Yekaterinburg, a family took 30 thousand rubles from Home Money and delayed repaying the debt for a week. The collectors came when the borrowers' 11-year-old son was at home. They pounded on the door for three hours, cut the wiring and telephone, and filled the keyhole with glue. The child, in a state of shock, somehow made it to a neighbor, and she called her mother.
An egregious incident occurred in Ulyanovsk, where a collector threw a Molotov cocktail at the debtor’s window. He ended up right in the crib where the owner’s little grandson was sleeping. The child received severe burns to his face and body. The reason was a debt of 4 thousand rubles in the RosDengi company.
Trial of a collector from Ulyanovsk
Since there was no legislative regulation of the activities of debt collectors, it was difficult to hold them accountable.
But on January 1, 2017, the law regulating work on the return of overdue debts came into full effect (No. 230-FZ of July 3, 2016). It significantly limited the possibilities of debt collectors and largely protected debtors. The number of lawless people in the ranks of collectors has sharply decreased. But it didn’t come down to zero.
For example, in September 2017, a story became public when an employee of a debt collection agency in St. Petersburg sent an elderly woman a photograph of her little granddaughter in a “funeral” interior.
Is it possible to protect yourself from such situations?
Collection agencies can work with your debt in two types:
- Either collectors work under an agency agreement with the bank (usually at the pre-trial stage and during the trial),
- Or your debt is sold to the agency, and then you become indebted to the collectors.
Despite the difference in attitude towards the debtor, in both cases the debt collectors have the same rights and restrictions.
| Collectors have the right | Collectors have no rights |
| Notify the debtor about any outstanding payments | Call anonymously without giving your full name and name of the collection agency |
| Call the debtor once a day, 2 times a week, 8 times a month - only to the number specified in the loan agreement | Call the debtor on weekdays from 22.00 to 8.00, on weekends and holidays - from 20.00 to 9.00 |
| Schedule a personal meeting with the debtor once a week | Insult the addressee and his relatives, threaten to cause harm to health or property. |
| Come to the debtor’s apartment (only with the latter’s permission) | Restrict the freedom of movement of the debtor |
| Be a creditor's representative in court | Unauthorized entry into the debtor's apartment |
| Destroy or damage property | |
| Tell other people the size of the loan and debt on it | |
| Trick a debtor into paying him |
How to communicate with debt collectors
- Always try to find out the full name of the person calling you. This will help not only to reduce the intensity of passions in the conversation, but also, if something happens, to competently write a statement to the police.
- Find out who is in charge of your debt - a bank or a collection agency.
- Find out whether the interlocutor is authorized to make decisions on your loan - for example, about restructuring. Do not get involved in disputes under any circumstances. The already mentioned Tomsk owner of the reconstructed tower conducted a long correspondence with collectors, in which he did not say a single impolite word and did not dispute a single statement of his interlocutors. In the end, they began to contact him much less often.
- If you are threatened, insulted or abused by debt collectors, contact the police.
- To avoid being shown the door, take care of evidence in advance: try to record all conversations, including personal meetings, and do not hesitate to videotape any illegal actions of debt collectors.
Trial
If the amount of debt is relatively low (up to 500 thousand rubles - Article 121 of the Code of Civil Procedure of the Russian Federation), at the request of the creditor, the magistrate issues a court order.
This is a document according to which bailiffs collect debt from all the citizen’s accounts, from all his income - in a word, from all income that they become aware of.
You can challenge a court order within 10 days from the receipt of a copy of this document (the judge must send it to the debtor).
If the court order is contested, the amount of debt is more than 500 thousand rubles, or the loan agreement provides for the collection of collateral or property (including co-borrowers and guarantors), legal proceedings begin. The court will send a summons to your home address.
You can avoid receiving it, but this will not give you anything: the issue will be resolved without your participation (the law allows this), and you will not get the opportunity to at least somehow explain your actions and achieve a court decision that is more favorable to you.
Meetings are usually held at your place of registration. It is mandatory to attend them.
Even before the trial, you should stock up on documents confirming valid reasons for non-payment of the loan. This could be a work book with a notice of dismissal, or other papers indicating that you were unable to pay on time.
If there are no good reasons, or you cannot prove them, try to involve a lawyer (especially if expensive property is at stake, which you may be deprived of).
It is important to prove your good faith, so bring to court the maximum number of checks for payments made before the delay.
Remember: if you pay at least 100 rubles monthly towards the loan, this will tell the court about your clearly expressed will to repay the debt.
The best strategy for going to court is:
- Acknowledge the debt (if you really have one), constantly talk about your desire to pay it off.
- Behave politely and correctly at meetings, do not blame the bank for high interest rates and the brutality of the security service - this is pointless, no one dragged you to the bank at gunpoint and forced you to sign a loan agreement.
- Try to support each of your statements with evidence.
If there were actions on the part of the bank that were on the verge of the law, you can file a counterclaim. Both applications will be considered together, and the overall result may be more successful for the borrower.
Based on the results of the hearings, the court makes one of the following decisions:
- Oblige the debtor to pay the debt in a lump sum (including through the independent sale of property).
- Pay off debt with salary deductions over a period of time.
- Repay the loan in full, but without penalties or late fees.
- Forcibly collect the debt from the borrower's property.
Within 10 days after receiving the decision, you have the right to challenge it by filing an appeal. It makes sense to do this if you are sure that the court did not take into account significant circumstances (for example, it did not take into account that you got a job and decided to immediately collect the debt at the expense of your car).
Third stage: post-trial
If the court has made a decision to forcibly collect the debt from you, the relevant enforcement documents (court order, writ of execution) are transferred to the bailiffs, and they begin enforcement proceedings.
Bailiffs have the right:
- seize or sell at auction property and property rights;
- seize or collect periodic payments from bank accounts;
- evict the debtor from the apartment (the only housing can be seized, but it cannot be evicted from it).
The law allows for other actions, including on behalf and at the expense of the debtor.
But here is what bailiffs do not have the right to collect:
- Land plots under the real estate located on them - the land cannot be taken away if the house on it remains the property of the borrower.
- Household and personal items (excluding luxury items).
- Machinery and equipment used in the borrower’s professional activities.
- Food and cash in the amount of the subsistence level for each family member.
- Firewood and other fuels used for cooking and heating homes.
- Livestock and poultry (unless they are raised for sale).
- Transportation and other devices used by a disabled debtor.
- State awards, badges of honor, prizes.
Is it legal to not pay a loan? 6 main ways
There are at least six options to get rid of your credit load in a completely legal way.
Method #1: Termination of the loan agreement
1 This is a method for those who are well versed in legal intricacies. In some small banks, and especially in microfinance organizations, contracts are often not drawn up at the highest level. They may contain provisions that contradict the law (for example, on the calculation of interest on loans, penalties, or the collection of overdue payments).
The court's cancellation of such provisions leads to a serious reduction in the debt, and in some (albeit very rare) cases, to a complete cancellation of payments. But this trick, of course, won’t work with documents from large banks.
Method #2: Debt redemption by third parties
2 If collectors can buy your debt from the bank, then why don’t you buy your debt from collectors. Not directly, of course, but through relatives. Or through the company of a rich uncle.
The minimum cost of your debt is 20% of the total amount. Maximum – 50%. So your relatives will also earn extra money from you. Another thing is that not every collection agency will agree to part with a gold mine so easily.
Method #3: Refinance or loan restructuring
3 If there is arrears, this is not an easy matter, but it is possible if you contact banks such as Tinkoff, Home Credit or Renaissance Credit. Maybe you'll be lucky and you'll get money at high, but not exorbitant, interest rates and pay off your existing debt.
(increasing the loan term with a reduction in the monthly payment and spreading late fees over many months or eliminating them completely) is easier. But the debtor himself must offer this option, and the bank will decide.
Method #4: Credit holidays
4 An uncommon option. The bank allows you to pay only interest for a certain time (usually a year), while the payment of the “principal” debt is postponed. Without a good credit history (before delays), there is nothing to count on this option.
Method #5: Loan repayment through insurance.
5 If, when concluding a loan agreement, you bought a special product from an insurance company - insurance against non-payment of debt - then your debt (if there is a valid reason specified in the policy) will be paid off by the insurers. The pleasure is expensive, and only a few go for it.
– There are situations when debtors get away with it. For example, this year, a pensioner from Vladimir had 4 million rubles of debt written off after she filed for personal bankruptcy, and the court decided that she simply did not have any property to recover. But this rarely happens.
Stories like this are more common: a woman entrepreneur from Rostov-on-Don took out a loan for her daughter’s education. Then another one - to cover business losses during the crisis. Then another and another... Now she has 6 loans, three of which are already being collected by the bailiffs. Plus, a criminal case was opened against her under the article “Fraud” due to the fact that the woman borrowed money from a friend to repay one of the loans, and then went into hiding so as not to repay the debt. The business is closed, the store is seized, the house is also seized, the husband left, the daughter dropped out of university.
But what other consequences threaten those who do not repay the loan or hide from bailiffs:
QUESTION: Can they be sentenced for real time for non-payment of a loan?
– According to the Criminal Code of the Russian Federation (Article 177), only malicious defaulters can be brought to criminal liability (they took out a loan knowingly without the desire to repay, did not make a single payment) if the amount of debt exceeds 1.5 million rubles. But even in this case, sanctions may be different:
- fine from 200,000 rubles;
- deduction from salary/other income for a period of up to 18 months;
- compulsory work for up to 480 hours;
- forced labor for up to 2 years;
- arrest up to 6 months;
- imprisonment for up to 2 years.
QUESTION: Can a bank forgive a loan that has expired?
– We recommend reading on a topic with good examples, judicial practice, etc. In short, yes, you can avoid paying off your loan after the three-year statute of limitations expires. But in practice, this can be a much longer period, during which you will actually have to be in a semi-legal position... Is the size of your loan worth such sacrifices?
The fact is that the statute of limitations applies to each installment on your loan payment schedule. This means that another 3-5 years can be added to three years, and in the case of a mortgage – even 10-15-20 years. Open the article about the limitation period using the link above, there are detailed and visual calculations, everything will become clear to you right away.
If you nevertheless decide to resort to such a scheme, then do not forget about the story of the family members of the borrower from Taganrog, who did not pay the loan for 3 years, went to the other end of the country and returned only when he learned about the cancellation of the debt.
His relatives were happy with him right up until the moment they tried to take out a loan themselves. Despite the cleanest credit histories, not a single bank in the city gave money to anyone related to the cunning citizen. They were secretly told that they were all blacklisted for life as borrowers and could only count on money from microfinance organizations.
Conclusion
So, friends, every person in life can have a bad streak. And if it affected your loans, then you need to clearly understand that your credit history will be damaged and in the future, when you need a loan for something very important, you will not get it.
Get ready for the fact that the bank will not just leave this matter, you will have to repeatedly communicate with the credit institution’s lawyers, possibly collectors, and these conversations will not be pleasant.
But if this happens, then first of all try to negotiate with the bank, find a compromise solution (credit holidays, restructuring, refinancing, etc.).
Collect all documents that you may need in the future in court to prove the impossibility of paying the loan or your insolvency.
Finally, if you decide to start hiding, then, in addition to the consequences listed in this article, remember the boomerang law. Everything in this life comes back and you have to pay for everything. There is no need to deceive anyone, live honestly, accept all the hardships of life bravely and look for legal ways out of any situation.
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Colorful, inviting banners advertising various bank lending services tend to convey the idea that getting a loan is extremely easy, and in your situation, this is an opportunity to improve your life circumstances in the shortest possible time.
A person is often influenced by such a marketing trick and takes on unsustainable debt obligations without thinking that perhaps after some time the situation will completely change. Then there comes a time when there is no longer enough money to pay the loan installments, and the borrower, in a panic, does not know what to do (especially considering that there is usually more than enough time).
What happens if you don’t pay the loan to the bank at all?
If money is not received to repay the loan, the bank will contact him to find out the reasons for non-payment. First, the debtor will begin to receive persistent calls and SMS messages. The same applies to credit card debt, this is evidenced by reviews from the owners (and the bank, as a rule, is aware of it and sends the application in a timely manner).
It is better not to delay the issue and agree to a meeting with representatives of the financial institution, who will offer several options:
- Restructuring. Reducing the monthly payment, which reduces the loan burden.
- Refinancing. Apply for another loan with a lower interest rate.
Thanks to this, it will be possible to pay off the current debt and this is a convenient opportunity to generally receive additional funds. This option is applicable for those who are employed and have a generally clean credit history (although if it is in the past, the situation may become a little more complicated).
I haven’t paid my loan for 2 years, what will happen?
A fine will be charged on a daily basis. All this is provided for in the contract and indicated in small print. Fines will amount to a specified percentage of the entire delay. The amount of debt will increase daily until the loan is paid.
If the situation does not resolve, and the client refuses to pay at all, the bank can use one of two solutions:
- Submit a statement of claim to the court.
- Contact the collection company.
Reviews from debtors indicate that it is necessary to prepare for the trial. File a counterclaim against the bank to reduce the monthly commission and other illegal charges required by the bank.
If the court sided with the bank, all materials are transferred to the enforcement service. The bailiff will notify the borrower twice. If the debtor refuses to pay at all, the property is seized, travel abroad is prohibited, and other measures are taken.
If I don’t pay the loan for 3 years, what will happen to me?
It is better not to conduct such experiments, but if this happens, then the first option with the court is discussed above, but if the bank decides to avoid litigation, it turns to collectors.
In this case, you should hire an anti-collector. Usually these are lawyers with experience in such legal conflicts. The anti-collector will partially take upon himself some of the unpleasant conversations with the collection service. If the threats are excessive and service employees abuse their powers, he will help file a complaint with the prosecutor’s office or the police.
Here are the reviews that debtors write on the forum about Russian Standard Bank: after refusing to pay, a visiting team from the collections department arrives. The methods used by collectors are generally very unpleasant for the client. “They knocked on the door for a long time and kicked it in”, “I haven’t paid the loan for 3 years, what will happen, collectors called, yelled and threatened into the phone”, “they shouted loudly, scared the child” - such reviews are the most typical.
Reviews in 2018 - what will happen according to the law?
According to the law, what will happen if you don’t pay the loan at all? Reviews in 2018 say that if the debtor does not have any property, provided the bank with knowingly false information about income, or is a willful defaulter, he may be subject to criminal liability. Reading reviews from Yekaterinburg, we can state that such a precedent happened there back in 2007.
This has become the starting point that the courts are guided by and impose penalties related to restricting the freedom of those who do not want to pay at all and who provide false documents. Do not expect that you will be able to sit out the time and wait for the statute of limitations (3 years).
There is no point in expecting that Alfa Bank, Renaissance or other financial institutions will forgive the debt. It is better to contact bank representatives and resolve the issue, as evidenced by reviews on the Internet.
I can’t pay loans from several banks, what will happen to me?
Responsibility varies:
- Seizure of funds and other valuables placed in a credit institution (Article 27 of the Federal Law).
- The bank can generally collect the loan and accrued interest ahead of schedule if the borrower refuses to pay. Also collect property that is pledged in accordance with Article 33 of the Federal Law.
- This will be followed by coercive measures (seizure of the debtor’s property, Article 68).
If a person took out loans from several banks and at the same time provided fictitious information about his property or income, the judge may decide that he acted with intent not to pay the loan at all, that is, he intended to take over the money of several banks through fraud. And you can exclaim as much as you like: “I can’t pay loans from several banks, what will happen to me and my family?” - the bank will follow the letter of the law and protect its interests.
Non-payment of a loan at Sberbank - what to expect?
Many people are interested in the question, what will happen if you don’t pay a loan from Sberbank? First, the bank will charge an additional 0.01% penalty on the total debt in addition to the contribution. A similar measure is provided for each overdue day. Sberbank does not provide refinancing. You can ask to postpone the payment date or reduce monthly payments.
If the client cannot pay even after a deferment or according to a new schedule, the bank will impose fines stipulated in the agreement. For a loan that is not secured by collateral or a guarantee, the bank will go to court. If a pledge is provided, the bank has the right to sell the property in order to return funds and expenses.
Car on loan, what happens if you don’t pay comprehensive insurance for the second year?
If you cannot repay the loan, it is better to understand the consequences in advance and develop an action plan. With “competent” behavior, failure to repay a loan is not a disaster at all. On the contrary, it is often more profitable to refuse huge monthly payments and wait for the trial. During the trial, the amount of debt will be fixed, and interest will no longer accrue. The repayment schedule for this amount will need to be negotiated with bailiffs, who are almost always ready to compromise (if you prepare correctly for this stage).
Let's start with refutations of those “horror stories”, which bank employees and collectors like to tell borrowers who find themselves in a difficult situation. So, what you don’t have to be afraid of, what won’t happen if you don’t pay the loan to the bank:
- To you they won't break it legs, they won't cut it out kidney, your children will not be kidnapped. As of the beginning of 2015, we do not know of a single case where threats of physical violence from banks or debt collectors were carried out (at least for Moscow).
- You they won't jail to jail, they won't give you a suspended sentence term, will not be sent to community service. Failure to repay a loan to a bank is not a crime, and when they talk about “court for non-payment of a loan,” they do not mean a criminal process at all.
- Social services will not be taken away from you children, yours relatives will not answer on your debt (unless they were guarantors). Non-repayment of a loan is a purely financial issue, and it concerns only you and the bank.
Of course, if you don’t pay off your loan, there will be some unpleasant moments, but you can prepare for everything in advance. Our experience shows that the most effective option is to immediately contact a credit lawyer. At a minimum, you need consult by phone, but better come to a lawyer for a personal meeting to bring the loan agreement and other documents. Only after familiarizing yourself with all the materials will a specialist be able to substantively assess the features of your specific situation. If for some reason you want to protect your interests on your own, you need to study in advance every issue that you will encounter.
All relations with the bank after the loan is overdue can be divided into three stages:
- Pre-trial stage: psychological pressure and threats from the bank and collectors await you. To protect yourself from this, you need to record every “sneeze” in writing and complain to law enforcement agencies.
- Loan court: The bank has the right to demand money through the court. In this case, you will face a trial lasting several months. As a result, the court will make a decision and fix the amount of debt.
- Post-trial stage: if you do not immediately pay the entire amount fixed in the court decision, bailiffs will become involved in the case. Typically, this means taking away valuable property and withholding part of your salary.
Depending on how competently you behave, each of these stages can go quite painlessly or, on the contrary, cost you a lot of effort and nerves. Let's look at each step separately and list the basic rules, compliance with which will make the borrower's life much easier. At the same time, it is important to understand that each situation has its own subtleties, which are determined not only by the features of the loan agreement, but also by the specifics of a particular region of Russia. Both the behavior of collectors and the position of judges will be significantly different for Moscow and, for example, for Khabarovsk or Grozny. If a large sum of money is involved, we strongly advise that you not only read the general guidelines, but also contact a local lawyer who is familiar with the practice in your area.
Pre-trial stage: what to expect from debt collectors if you don’t pay your loan
Suppose you decide not to repay the loan, what will be the consequences of this step? Literally a week or two after you miss the first payment, you will start receiving calls and SMS messages from the bank. At first these will be fairly polite reminders, but if the delay continues to grow, the messages will become increasingly harsh. After a couple of months, your loan will likely be referred to the bank's collection department or a third-party collection agency. There is no significant difference between these options, since both the in-house collection department and the external agency use the same methods. In practice, both are usually called simply “collectors”, without going into legal details.
The most popular method of influence from collectors is annoying calls to all known telephone numbers. Several dozen such calls can be received per day (both day and night). Sometimes there will be a “live” person on the other end of the line, sometimes there will be an autoinformer. The essence of all calls is approximately the same: “You owe money! Pay the money! When will you pay?”, but the tonality can vary greatly. Some debt collectors behave relatively politely, at least without direct threats of physical violence. However, you need to be mentally prepared for extremely harsh and unambiguous hints, for example:
- – Your son goes to school alone in the morning, aren’t you afraid for him?
- “There was one guy here who didn’t pay his debt either; they found him with a broken head.
- - No money left? If you sell your kidney, they can do something else for debts.
It should be remembered that all these are nothing more than empty threats. In our many years of practice, there has not been a single case where debt collectors resorted to physical violence and caused harm to health. In any case, hearing all this is very unpleasant, so be sure to record all conversations on a voice recorder, and as soon as threats begin, write immediately police report against collectors, and complaints to the prosecutor's office. In fact, many of the actions of debt collectors go beyond the boundaries of the law, so you can (and should) complain to law enforcement agencies not only about threats. However, only a professional lawyer can understand the details of a specific situation and prepare competent documents.
In any case, do not hesitate to write statements to law enforcement agencies. Yes, without the help of a lawyer you will not be able to punish the debt collectors, but your task is different - to get them to leave you behind. Practice shows that the police have unofficial leverage, and if you submit several applications, the collectors may receive an informal instruction not to contact you. Unfortunately, you may have quite a lot of reasons for such statements. For example, unknown people can puncture the tires on your car, fill the door lock with glue, write something unpleasant on the door of your apartment with a permanent marker, etc. 
Collectors can write down the door of your apartment or damage the lock on it. Even neighboring doors can be stained to turn the neighbors against you.
You need to be prepared for the fact that pressure will be exerted not only on you personally, but also on your relatives, acquaintances, and neighbors next door. Collectors may come to your children's school and tell their class teacher about your debts. They may call you at work to report your unreliability to management and threaten a tax audit if management does not put pressure on you. They may drop flyers with information about your debt into your neighbors' mailboxes. They may call your parents and demand money on the grounds that they raised you poorly. They may send you fake subpoenas and orders to initiate criminal proceedings.
In general, the methods of psychological pressure can be very different, but on your part there should be one reaction to everything - to complain. It’s just important not to forget that each government agency has its own area of responsibility, and in order to achieve results, you need to write strictly to the address. For example, if we are talking about the disclosure of bank secrets, it is useless to write to the police, you need to complain to the Central Bank. If the violation concerns your personal data, then you need to complain to Roskomnadzor. Let us remind you that each subject of the Russian Federation has its own regional specifics, so before sending complaints it is advisable to consult with a local lawyer.
If you behave correctly with debt collectors, they will most likely quickly stop causing trouble. They may either “forget” about you altogether for a while, or simply move on to formal communication without harsh pressure and threats. However, you need to understand that the situation may repeat itself from the very beginning if your debt is transferred to another collection agency. In this case, you need to follow the same algorithm: record every step and, as soon as the law is violated, write complaints to government agencies. If you do not respond to pressure, then after a while, most likely, a lawsuit will be filed against you.
Loan court: How to officially reduce your liabilities
Going to court usually occurs six months to a year after the borrower stops paying the loan. However, in some cases this period may be significantly shorter (a month or two) or significantly longer (several years). More often, the bank goes to court rather than the collection agency, since in most cases it is the bank that retains the right to claim the loan. However, a lawsuit is an additional cost for the bank, and if we are talking about small amounts, then there may not be a trial. The question of what amount is considered “small” depends on the specific bank and region of Russia. For example, in Moscow there are practically no lawsuits for debts of less than 50 thousand rubles.
When the bank decides to take the issue to court, it will have two options, very different both in procedure and consequences.
First option- this is an appeal to a magistrate, who does not summon the borrower and does not listen to his objections, but immediately issues a court order. There is no need to be afraid of such a development of events, since a court order can be canceled as easily as it was issued; To do this, you just need to write correctly application to cancel a court order. We can say that this option is designed exclusively for the fool, and if you know your rights, then the bank will simply waste time without any threat to you. However, the cancellation of the court order is not the end of the story; usually after this the bank uses another mechanism and goes to the district court.
So, second option- This is a statement of claim in a “regular” district court. In this case, the borrower will face a months-long trial, about the beginning of which he will be informed, see the article “ If you receive a subpoena regarding a loan" During this process, the borrower will be able to provide the court with objections to the bank’s demands, as well as his version of debt calculation. If the borrower makes competent arguments, the court can significantly reduce the amount that the bank initially demanded. However, only legal arguments with reference to laws are taken into account, and no one will listen to stories about hard life in court. In fact, this means that if the borrower does not have a legal education, then in order to protect his interests in court, he needs to seek the services of a credit lawyer.
Helpful information
Post-trial stage: how a court decision is executed
So, several court hearings took place in your case, the court considered the arguments of the parties and made a decision. Except in extremely rare cases (for example, when The statute of limitations on the loan has expired), the court decision will say that you must pay the bank a certain amount. This amount may be more or less depending on whether you protected your interests yourself or hired a professional credit lawyer. However, in any case, you need to be prepared for the fact that if you stop paying the loan, the court will demand that you return the money to the bank. Usually, the court decision does not indicate a payment schedule, and all the details are determined by the next authority - the bailiffs.
Unlike debt collectors, who according to the law do not have any powers, bailiffs have powerful tools for collecting money. First of all, we are talking about the seizure of the debtor’s property: real estate, cars, household appliances and electronics, money in accounts in other banks, etc. In addition, bailiffs can withhold up to 50% of your “white” salary, which will be immediately transferred to a special account. However, if no property is officially registered in your name, and you do not have a “white” salary, then it is quite possible to agree with the bailiffs on a payment scheme that is convenient for you. For example, you can transfer a very small amount (literally a few thousand rubles) to a special account every month, and the bailiffs will not bother you.
It is important to understand that if you return the money by court decision through the bailiffs, then the debt has already been fixed, and no interest or fines will be charged anymore. You can pay the total amount for at least ten or twenty years - to the extent possible, and this amount will not increase. Naturally, everywhere has its own subtleties and pitfalls. For example, if after a court decision you “donated” an apartment or a car to your relative (to avoid seizure by bailiffs), you may be charged with a criminal offense - fraud. To avoid problems, we strongly recommend that you do not rely on general information from the Internet, but consult with a professional credit lawyer.
Summarize. If you do not pay the loan, three stages await you: first, pressure from collectors, then a lawsuit, then enforcement of the court decision by bailiffs. All this can be experienced painlessly if you prepare in advance and behave competently in each situation. First of all, we advise come for a consultation with a credit lawyer who knows the practices in your region.
What to do if there is a delay and there is nothing to pay the loan? How does a court case with a bank proceed if there are debts? Is it possible not to pay a loan at all and how to do it legally?
Hello readers and visitors of the HeatherBeaver online magazine! Denis Kuderin is in touch.
We continue the multifaceted topic of financial insolvency (bankruptcy). In a new article I will try to answer the question of what will happen if you don’t pay your credit bills.
The publication will be useful to everyone who has taken out a bank loan at least once, as well as to those who are planning to do so in the near future or in the distant future. Knowing what happens in case of non-payment of a debt is necessary for everyone who deals with loans.
One of my close friends got into an unpleasant situation - he took out a loan and missed the payment. Therefore, I know first-hand what a bank can do in such situations.
Below I will tell you everything in detail!
1. What happens if you don’t pay the loan?
When a person borrows money, he roughly imagines how he will pay it back - deduct a certain percentage from his salary, repay the loan early from additional income, etc.
Every borrower believes in the best - that debt obligations will be repaid without delay, or even before the due date. When signing a loan agreement, few people think in advance about unforeseen options - such as dismissal, economic crisis, force majeure.
And such options are found all the time. The money needed to pay off the debt goes in another direction, there is absolutely nothing to repay the loans, and the loan itself turns into an unbearable burden.
What to do if it is impossible to repay the debt? What happens if the debtor stops paying the loan? It is better to know the answers to such questions in advance in order to develop an effective action plan if something happens.
If the debtor behaves competently, forced non-payment of the loan will not turn into a disaster. Sometimes it is even more profitable for the borrower to refuse exorbitant monthly payments and initiate proceedings for his financial insolvency (bankruptcy).
Judicial enforcement mechanisms are such that during the proceedings, the accrual of interest is suspended, and the amount of the debt is fixed. The new debt repayment schedule is discussed with financial managers, who for the most part are always ready to compromise.
Myths about non-payment of loans
To reassure readers, I want to immediately refute a number of the most common “horror stories” with which some bank employees and debt collectors like to scare gullible clients.
If you fail to pay your loans, the following will NOT happen to you:
- no one will break your legs, cut out a kidney or kidnap your children: to date, there have not been any cases of real physical violence against debtors by collectors or banks;
- if you are not a persistent defaulter, you will not be sent to prison or given a suspended sentence - when they say “trial for non-payment”, they mean an arbitration court, not criminal prosecution;
- social workers will not deprive you of parental rights;
- your relatives will not be held responsible for the debts (unless they were guarantors).
In other words, non-payment of loans is a purely financial problem that concerns only the debtor and the credit institution.
Read more about the mechanisms and consequences in a special article on our blog.
However, a frivolous attitude towards unpaid debts is as unacceptable as fear and panic. You won’t be able to avoid unpleasant moments, but you can prepare for them in advance.
Legal aspect of the issue
Protecting the rights of the debtor is the work of the debtor himself, as well as the lawyers and anti-collector agents he has attracted. No one will help borrowers for free, but they have the power to study the legal aspects of insolvency and skillfully use the knowledge gained.
The law on bankruptcy of private individuals in the Russian Federation came into force at the end of 2015. Before that, all conflicts between banks and loan recipients were resolved individually within the framework of general federal legislation.
The need to recognize the bankruptcy of individuals (this includes individual entrepreneurs) has arisen in connection with the development of the institution of lending in the country. Consumer loans are available to everyone today, and millions of citizens have already taken advantage of this opportunity.
Purchasing power has increased, but not all loan recipients are able to realistically assess their financial potential. This is partly due to the low level of financial literacy of the population.
Abroad, the lending system has been operating for a good hundred years; The residents of our country have not yet developed an appropriate attitude towards debt issues. In the mid-2000s, citizens took out loans, as they say, “in batches,” almost without thinking about how they would repay them.
The results of this approach to loans are disappointing:
- almost a third of the population of the Russian Federation (about 40 million) has debts to banks or microfinance organizations;
- Of this number, 5-6 million have the status of defaulters - that is, they constantly or periodically violate their debt obligations.
Relations with the bank after the formation of overdue payments usually develop according to the following scenario:
- Pre-trial stage. At this stage, the debtor is subjected to psychological pressure and sometimes threats from creditors. Lawyers advise, if possible, to document all actions of bank employees, so that if something happens, you have something to contact law enforcement agencies.
- Trial stage. The bank has the legal right to recover money through the court. During the process, the debtor's property (material assets and accounts) are subject to seizure.
- Post-trial stage. Depending on the decision made in court, the debtor is subject to certain sanctions.
If the debtor behaves competently at all stages, the consequences of non-payment of loans will be minimal. If you choose the wrong course of action, bankruptcy will take away a fair amount of your strength and nervous energy.
2. How money is recovered after trial - the main stages
Before moving on to the stage of collecting money after a trial, I’ll tell you a little about the bank’s pre-trial actions.
If you decide not to pay your bills or cannot do so for reasons beyond your control, do not expect the banks to forget about the debt and leave you alone.
Within a couple of weeks after the first delay, an SMS reminder from the bank will be sent to your number. Then the staff will start calling you. At first, these requests will be correct - you never know, maybe you really just forgot to transfer money to your account. Then the reminders will become more severe.
Some clients at this stage choose a completely wrong line of behavior - I call it the “ostrich position”. They don’t answer calls, ignore SMS calls and generally bury their heads in the sand, apparently believing that the problem will resolve on its own, like a stitch after a hypnotherapist session.
I assure you, it will not resolve. The number of calls will only increase, and after a while your case will be transferred to the collection department of a financial company or collectors. These structures act in almost the same way - they put pressure on the debtor in every possible way, preventing them from relaxing.
Correct lines of conduct at the pre-trial stage:
- negotiations with the bank;
- mutual concessions;
- compromise solutions.
This does not always lead to the desired results, but at least it saves your nerves.
And then - even if the case comes to court, it is not a disaster. Yes, your life will change, but it is in your power to get out of the financial impasse with the least losses.
Let's move on: the court held scheduled hearings on your case, considered all the circumstances of non-payment and rendered a verdict. Usually the court's decision is clear - the debtor pays the bank a certain amount. How this will be done depends on the specific circumstances of the case.
All details of subsequent sanctions are determined by bailiffs. This authority has much more powers than the same collectors. Bailiffs have the most powerful enforcement tools in their hands, allowing them to achieve the main goal - fulfilling debt obligations.
I will tell you about these tools in detail.
Stage No. 1. Seizure of property
Seizure of movable and immovable property is an almost mandatory procedure if it comes to declaring bankruptcy of individuals and legal entities. Seizure is also imposed in cases where you took out a loan against collateral.
Example
If you took out a loan secured by your own car, the court has every right to seize your car. By deciding to sell it or hide it, you will become a malicious evader and may incur criminal liability for your actions.
After the car is seized by the court, the vehicle will be described by bailiffs and then sold at free auction. Proceeds from the payments will be used to pay off the debt. If there is any extra money left after the sale, it will be returned to the owner.
But even if there was no talk of any collateral when drawing up the loan agreement, the property can be seized - in situations where it is impossible to repay debts in any other way.
Can bailiffs seize an apartment for debts? Only if this living space is not your only place of residence. In addition to living space and transport, bailiffs have the right to seize household appliances, furniture, and jewelry.
What happens if the debtor does not have valuable property? Banks and bailiffs will look for other options for repaying the debt. They will make inquiries to tax and financial institutions to find out your place of work, salary and bank account status.
Stage No. 2. Foreclosure of funds
Collection of debtors' finances is an effective tool for repaying debt. In terms of efficiency, it is not inferior to the arrest and sale of valuable property of insolvent borrowers.
Having learned in which banks a citizen has accounts, the bailiffs have the right to arrest them and transfer the funds to the creditor. The right applies to any deposits, except those for which social payments and government benefits are received.
Such accounts can also be seized, but after the source of funding is clarified, restrictions are lifted from them. The debtor has the right to challenge the court decision by contacting the relevant services.
Stage No. 3. Indexation of the debt amount
The essence of this stage is as follows. Without indexation, a person who borrowed 100 rubles 10 years ago pays the lender exactly this amount.
However, as a result of inflation, devaluation and economic crises, the real value of the mentioned amount is reduced several times. The debtor will be the winner, the creditor will be a fool.
Against the backdrop of the permanent instability of the ruble, indexation of the debt amount becomes especially relevant. Such a decision is usually made in cases where a court verdict regarding the fulfillment of debt obligations has already entered into force, but the debtor for some reason did not fulfill it or did so only several years later.
The threat of indexation is a kind of incentive for debtors to execute court decisions more efficiently.
Stage No. 4. Sending a writ of execution to the place of work
The essence of such an actuator is extremely clear. When a citizen does not have valuable property and money on deposit, this does not mean that banks will forgive him all his debts. You will still have to pay the bills.
At the place of work of the person, the bailiffs send a writ of execution, which orders the withholding of part of the amount from the salary due to the debtor in favor of the creditor. Usually this is 50% of the official salary. Through the court, you can achieve a reduction in the percentage of payments, but such a decision cannot be completely reversed.
Stage No. 5. Restrictions on rights
In addition to collecting money, there are other mechanisms of influence on negligent borrowers. For example, they are prohibited from leaving the country until loan debts are paid in full.
Persons declared bankrupt are prohibited from holding leadership positions for a certain period of time.
Of course, bankruptcy negatively affects a citizen’s credit history. It is unlikely that he will be able to take out a new loan if he has already been in court for non-payment of a previous debt.
Stage No. 6. Forced eviction
Bailiffs can seize an apartment and evict the owner only if this is not the debtor’s only home. In addition, the amount of debt must be comparable to the price of the property.
Example
If the debt is 300 thousand rubles, and the cost of the apartment is 10 million, the court is unlikely to insist on the seizure of housing, but will try to resolve the issue in a different way.
Real estate will also not be taken away if part of the living space belongs to minors or if they are at least registered in the apartment. Social care authorities strictly monitor compliance with children's rights.
Bailiffs rarely resort to the procedure of housing inventory, but in theory such a situation is quite possible. The eviction process takes place accompanied by witnesses. If the debtor refuses to leave his native walls voluntarily, coercive influence from law enforcement agencies is allowed.
3. How not to pay a loan legally - 5 basic tips
We have looked at all the negative consequences of non-payment of loans, now it’s time to tell you how you can avoid situations that are undesirable for borrowers or at least reduce the damage.
The loan recipient has the right to cancel the agreement if violations are found in it. Sometimes, with the help of professional lawyers, debtors manage to cancel extortionate bank charges and fix the amount of debt.
In rare cases, it is even possible to refuse payments completely - if gross violations are discovered on the part of the credit company.
The problem is that only specialists can find loopholes in legal documents, and their services cost money.
When the bank transfers your debt to collectors, a good option to reduce the damage is to buy the debt from someone close to you.
Not all borrowers are aware that this method of resolving the issue even exists. However, the redemption procedure is completely legal and is similar to that of transferring a bank debt to collectors.
The minimum ransom amount is 20%, the maximum is half. The law allows debt repurchase by legal entities.
The best option for resolving a debt issue. Banks often accommodate their clients halfway if they pursue a policy of openness and do not shy away from negotiations.
There are several types of peaceful conflict resolution:
- debt restructuring;
- refinancing – obtaining a new loan to cover a previous loan;
- deferment of payments (credit holidays) - sometimes the bank allows clients to postpone debt repayment for a year or two (during this period only interest is charged).
Finding a compromise is easier for loyal customers who have not previously made late payments.
Tip 4. Restructure credit debt
The most common compromise solution. Restructuring is a set of measures designed to stabilize the financial status of the debtor.
Here I will briefly indicate what measures are being taken to restore a citizen’s solvency:
- reduction in the amount of monthly payments;
- increasing the total loan term;
- cancellation of fines for a certain period.
Restructuring is one of the favorable outcomes in bankruptcy cases.
Admission of insolvency means that the debtor really does not have the ability to repay the debt. When a person becomes bankrupt, their property and accounts are seized. Next, a procedure for selling assets is prescribed.
The assessment of the value of property is carried out by an official - a financial manager. He also appoints the time and method of selling valuable things in favor of the creditor.
4. Who can help if you can’t pay the loan – review of the TOP 5 anti-collection agencies
People who find themselves in difficult financial situations are helped by law firms specializing in bankruptcy and civil insolvency. Such organizations are called “anti-collectors”.
I bring to the attention of readers a list of the 5 most competent and popular law firms in this area in the Russian Federation.
1) OFIR
A company headquartered in Moscow that provides services to individuals. Resolves all issues related to overdue bank loans and outstanding debt obligations.
Help from professional credit lawyers (anti-collectors), support for citizens in difficult financial situations, work with banks, collectors, microloan organizations, leasing agencies.
2) First Anti-Collection Agency
A company working on issues of debts of citizens and legal entities to banks, microfinance organizations and leasing companies. The name of the company speaks for itself - any anti-collection services, legal debt write-off for individuals and legal entities.
Guaranteed confidentiality, round-the-clock professional advice from lawyers and bankruptcy specialists. Experience in handling complex financial and legal cases that other anti-collection companies have refused.
Qualified assistance in solving any problems of borrowers. Among the advantages of the company are a large staff of experienced lawyers and the possibility of remote consultations with employees.
The bureau employs only professional and experienced lawyers specializing in bankruptcy issues of legal entities and individuals. Resolving issues and conflict situations related to pressure on citizens from collectors and bank representatives.
Professional protection of citizens in the fight for their legal rights in relation to all kinds of debts. The company's motto is “The law is on your side.”
The company's staff includes lawyers with the highest level of qualifications, experience in bankruptcy cases and thorough knowledge of the Civil Code. Guarantee of a quick resolution of any conflict situations, reduction or cancellation of fines, reprofiling of debt obligations.
Full service agency with an office in St. Petersburg. The main specialization of the company is bankruptcy of citizens (individuals).
The agency protects borrowers from actions of collectors and banks, returns illegally taken fines and commissions. The company's specialization is “turnkey bankruptcy” taking into account the client’s budget. A course towards a complete and most beneficial solution for debtors to the credit problem.
For convenience, I will present the main characteristics of agencies in the form of a table:
№ Company name Head office location Advantages and features of work 1 OFIR Moscow Guaranteed success in 99% of cases 2 First Anti-Collection Agency Moscow Resolution of the issue in favor of the client within 24 hours 3 Moscow Free consultations by phone 4 Moscow 24/7 remote consultations via the Internet 5 Saint Petersburg A course for maximum savings of client funds.
Loan agreement - monthly payments including interest for using a bank loan. Failure to fulfill obligations leads to unpleasant consequences - from debt collection through court to seizure of collateral property.
Liability for non-payment of loan
What consequences await the borrower if the loan is not repaid must be indicated in the text of the signed agreement. The corresponding paragraph of the document provides for measures that may be applied to the defaulter.
The law provides for two types of financial liability for late payment of a loan:
- Collection of penalties from the debtor. It is determined as a percentage of the entire debt or a fixed amount is established. Sometimes the contract stipulates that for late payment of funds, fines will be applied for each day of delay (microfinance organizations).
- Early payment of debt. The measure is applicable if the borrower fails to meet payment deadlines for 2 months within 90 days.
Agreement with financial institution
The reasons for a borrower's failure to repay a loan are different: loss of work, deterioration of health and other unforeseen financial expenses. When such a case occurs, it is necessary to contact the bank; you cannot hide from the lender.
Many banks provide refinancing and restructuring programs for issued loans.
The system allows you to avoid fines and penalties and maintains a positive credit history. To participate in the program, the borrower must write a corresponding application to the bank.
Collection procedure
Debt collection is carried out in two stages:
- pre-trial settlement - involvement of collectors or the financial institution’s own service;
- court hearing.
The Law “On Consumer Lending” regulates communication with the borrower by representatives of bank employees and debt collectors. Employees do not have the right to call or write messages to the debtor from 10 pm to 8 am, or make frequent calls.
Cases where employees threaten to confiscate property, personal violence, or hang photographs in the entrance are abuse of power and corpus delicti. The borrower can send a statement to the police, prosecutor's office and Roskomnadzor against the organization.
A judicial procedure is a statement of claim sent by the bank to arbitration. The amount is indicated taking into account fines and penalties. The debt is calculated to the maximum; the court hearing can be held without the presence of the borrower.
If the debtor cannot attend the trial, there is a good reason, then the judgment may be canceled.
To do this, a petition is filed and a new meeting is scheduled.
Forced collection
The court decision can be appealed within 10 days.
The arbitration office sends the writ of execution to the bailiff department. The debtor is dealt with by service employees. Enforcement proceedings are initiated to collect loan funds from the borrower. If the borrower refuses to pay further, then the bailiff has the right:
- seize and sell property;
- withhold the defaulter's funds from his bank accounts;
- collect up to 50% of wages until the debt is fully repaid;
- limit travel outside the Russian Federation - debt over 10,000 rubles.
If collateral property was transferred to the bank under the loan agreement, the creditor has the right, based on a court decision, to auction the debtor’s property in order to obtain funds to repay the debt.
The collateral is vehicles and real estate. If the mortgage loan is not repaid, the bank may evict the debtor without providing another living space.
What property cannot be seized by bailiffs
- the debtor’s only living space (if the apartment is not pledged);
- household items, personal items, if this is not luxury - jewelry, a second microwave, several televisions and other property;
- funds for alimony payments and benefits;
- things necessary for work or study - the only computer, telephone.
Installment plan
The defendant in a claim document has the right to apply to the court for an installment plan or deferment of payments. The basis is objective circumstances that led to a deterioration in the financial situation.
The application must be accompanied by documents confirming the existence of a difficult financial situation (a certificate from the employment center or a document confirming incapacity for work).
A deferment may be granted by the court until the debtor gets a new job or improves his health in order to repay the loan in full. Compliance with installments means the exclusion of the use of compulsory collection measures by bailiffs.
Criminal liability
Often employees of collection organizations threaten the borrower with criminal liability. According to the laws, a debtor can be held criminally liable in two cases:
- malicious evasion, Article 177 of the Criminal Code of the Russian Federation - amount over 1.5 million rubles;
- fraudulent actions, Article 159 of the Criminal Code of the Russian Federation.
Malicious evasion threatens only if the borrower has a large debt and deliberately does not pay it after a court decision is made and the claim is filed with the bailiffs.
Loan collection services scare defaulters with Article 159 of the Criminal Code of the Russian Federation on the fact of fraud for non-payment of debt. In this case, the facts of the crime must be present: unreliable information - the borrower submitted false documents, knowingly false information about himself and his work, the debtor initially intended to take out a loan and not repay it.
If at least one payment was made on the loan, then criminal liability for it is an empty threat from collectors.
The consequences of non-payment of a loan boil down to loss of funds in the form of penalties and fines. If there is a possibility of an agreement with the bank, then it is better to meet the employees halfway. If there is no opportunity, then the borrower should not be afraid of the court. Arbitration can reduce interest on a loan if the debtor proves his insolvency.