Illness, divorce or job loss are perhaps the most common reasons for not being able to meet ongoing financial obligations. Such reasons are rarely foreseeable and usually never intended. However, you still have to live with the consequences. When you default on your loan, lawmakers often consider you insolvent. However, insolvency does not automatically lead to insolvency. Instead, it should only be a temporary condition. They just earn less than they spend. This means that you should adjust your financial behavior immediately. Because with debts in insolvency one should be careful not to "in a manner contrary to the requirements of proper economics...by uneconomical expenditure...excessive amounts' to spend.
Under no circumstances should you go on holiday in the South Pacific with your family if you can no longer pay off the car loan. Instead, you should avoid spending money on anything that isn't strictly necessary. Your bank can impound your car if you don't pay off your outstanding car loan. As a rule, the so-called foreclosure is included in the loan agreement. The loan agreement states that the car is not yours until it is paid off. Until then, the bank is the owner (retention of title). Although there are exceptions to insolvency law if you absolutely need a car to carry out your work or are severely disabled, these exclusions only apply if the vehicle already belongs to you. The other consequence you have to deal with is the possible negative entry in the Schufa, which can cause problems if you want to borrow money or buy something on account. If you have a negative Schufa entry, you will usually not receive any EC cards, credit cards, mobile phone contracts or goods on account.
the "special debt advice"
But maybe it's completely different. Because depending on the individual case, there are solutions that the normal "debt counselor" or "bank employee" does not even mention. You can often prevent the EV tax, avoid yellow letters, secure property, prevent garnishments or end them directly. And this does not necessarily require a lawyer, but someone who has become a real expert in this field through their own experience. Only such a person can truly understand the person concerned. And such a professional also tells the person concerned if it does not make sense to use the service offered. Where is such a person? on way-address.com
You can do this in the event of bankruptcy!
Many banks already offer a so-called residual debt or installment protection insurance (RSV) when you take out a car loan. This protects the remaining loan amount against payment defaults in the event of incapacity to work, unemployment through no fault of your own and also in the event of divorce. However, the amount of the monthly premiums varies greatly depending on the amount and type of risk covered and the age of the policyholder. In individual cases, it can even be so high that the monthly loan installment doubles. If you already have accident or disability insurance, an RSV is usually not necessary.
Credit rescheduling does not always make sense and is not always feasible!
Before taking any further steps, you should consult a debt counselor if you do not have insurance. Such counseling centers are offered by many states, cities and communities. There are commercial debt counseling centers as well as free public ones. Debt restructuring is an option you can consider and is often offered by banks. One or more existing loans are replaced by a new one. However, this only makes sense under the following conditions: The existing contracts must have a early repayment enable. However, since the banks do not waive outstanding interest payments, this is not always the case. On the other hand, the conditions, especially the interest rate, of the new loan be cheaper than that of the old loan. If you are offered a debt restructuring, you should definitely include all the costs involved in your calculation, including any fees incurred for the termination of the old loans.
Personal bankruptcy is the worst way!
Deferment of payment, i.e. a deferral, is an option if you can convince the bank that your financial situation will improve in the foreseeable future. But the delay extends the life of the loan. Debt comparisons for car loans are rare. In a comparison, the lender, usually the bank, waives part of the debt so as not to go completely empty-handed. However, since the car can be foreclosed on with a car loan, the bank rarely seeks such comparisons. However, it can be the case if the market value of the car is significantly lower than the remaining debt at the bank, for example if the car was a total loss. The comparison always refers to the privileges of the bank and depends on the negotiating skills of each individual.
Personal bankruptcy, also known as consumer bankruptcy, is by far the worst way out of insolvency. In doing so, you cede your income and assets to a trustee for a six-year period of good conduct. Since July 2014 there has been a deadline of only three years, but it is linked to much stricter conditions. Basically, you should get an overview of your financial situation before any new financing. If you are sure that you can also master longer bottlenecks, then you can get started. If you still become insolvent, you should first seek debt advice. The consultants are professionals and have no personal gain in mind.
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Of course, that wasn't the end of it!
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