If I can’t pay the loan, what do I do? Credit holidays. Insolvency (Bankruptcy) Act

The credit market in the Russian Federation is constantly growing. Along with this, the number of overdue loans is increasing. The greater the amount of credit and the longer the delay, the greater the burden on the client. It turned out a vicious circle. If the client did not pay the loan for a long time, they sued him. Without a good reason, postponing your position will be very difficult. How to get out of debt hole?


A note for the novice

money loans

When a person applies for a loan in 2007, the bank roughly represents the sources from which to repay the debt: salaries, pensions, deferred funds. However, unforeseen situations may occur in each. In order to prevent the loan from becoming a burden, certain measures need to be taken in advance. Otherwise, you have to ask your brain to find the answer to the question: “If I cannot repay the loan, what should I do?” What can I recommend in this situation? 

First, remember the debt. Although collectors still do not ring at the door, the bank still charges interest and penalties. Credit history is deteriorating.

Second, do not avoid contact with bank employees. Otherwise you will quickly fall into the category of cheaters, and will not be reputable customers.

Third, try not to panic. Yes, the situation is not pleasant if the bank’s employees threaten the court. Credit debt is a financial problem. In such a situation you definitely do not need to get a new loan to repay the old. It is necessary to focus on dealing with the bank and try not to bring the case to court.


How to build dialogue?

The bank offers

If the problem of debt repayment is temporary and is linked to a change in work, it is better to agree on a new payment schedule. Read more about how to take a credit holiday, read on.

If the financial problem is not resolved quickly, you must ask the bank to review the terms of the contract and to provide evidence of insolvency (medical report, birth certificate, death certificate, etc.). You will also have to explain to the bank where the money comes from. First, it is better to request a delay of 2-3 months. A loyal bank does not even have to charge interest if it is convinced of the client’s good faith. In case of violation of the terms of the agreement on new concessions by the bank, you may forget.



Consumer Loan “Comfortable”

If I cannot repay the loan, what should I do? You can try to agree on debt restructuring, ie “Loading” the terms of the loan. The principle of operation is exactly the same. It is necessary to prove to the bank the fact of insolvency for good reasons, to explain where the money will arrive on time. The credit institution shall have an interest in recovering the funds. If the bank realizes that it is dealing with the customer in good faith, it will reduce the amount of the payment and extend the term of the contract.

The outcome of the restructuring largely depends on the customer’s reputation and common sense. Consumer loan of 20 thousand rubles. extended by 3 years does not work. Especially if it is known that the source of funds will be a new loan.


Credit holiday

Cash withdrawal

If I cannot repay the loan, what should I do? One solution to the problem may be the proposal for a ‘credit holiday’. What is it? There is no official interpretation of the term in any legislative act, but banks often use it to communicate with clients. Credit holidays are deferred loan repayments, revision of repayment schedule. The service is provided only for long-term loans (mortgages and car loans). The Bankruptcy Act provides for two options for “credit holidays”. Each has its own characteristics.

Full deferral of the loan repayment without change in the duration of the contract is granted once for the entire period of use of the loan and most often on a paid basis. The basis of such a ‘holiday’ should be a good reason to demonstrate: poor health, dismissal, etc.

It is preferable for the bank to provide the customer with a partial delay in the repayment of the credit authority, but subject to the timely payment of interest on the loan. The service may be provided twice during the term of the contract, but no later than 3 months after its conclusion. As interest accounts for most of the payment, the payment itself is slightly reduced. If the loan period is not extended, the monthly payment is increased at the end of the ‘vacation’. In any case, the total overpayment under contract increases.


How to apply for rest?

Benefits of consumer loans

Lenders provides credit holidays to obtain evidence of financial distress. Some organizations provide this service at the client’s request, but on a fee basis. How to get a credit holiday at Lenders?It is necessary to collect and provide documents to the credit officer confirming the difficult financial situation, to write a request for deferred payment. After a positive decision you have to sign another agreement to change the terms of the loan.

Holidays can be a temporary solution to the problems. If you took out a loan, you cannot repay the debt on time. However, the conditions for the provision of services need to be studied in detail so that they do not fall into new slavery.



If I cannot repay the loan, what should I do? The first step is to calm down and get in touch with the bank yourself.

If there are lots of loans, you have to collect them in one, pay off your debts once a month and not collect fines. The debt may be consolidated in another credit institution.However, the new lender will require a larger package of documents and a fee for this service.

Do not confuse refinancing and receiving a new cash loan. The first service is provided to reduce the credit burden.The client receives a new loan for repayment of old debts.

The Bankruptcy Act provides that collateral can be sold. It is better if the borrower takes such a step voluntarily.Otherwise, the bank will sell the property at half the market price.

The credit must be notified in advance to the institution for the sale of collateral. If trust in the client is compromised, the bank will send a representative to complete the transaction. There’s nothing wrong with that. The credit institution wishes to solve this problem. The expert will help you find the buyer and compile the documents for the transaction.


I do not pay loans: consequences

Cons Consumer Loans

Credit debt is a financial problem. It is difficult to solve, but it is possible. The main thing is not to give up. What happens if you don’t pay the loan at all?

Debt accumulates like a snowball. Sooner or later, interest, penalties and loan body will exceed the annual income. Such debt will have to be repaid before old age.

Sooner or later the bank will contact. Call center staff first, then professionals. Their goal is to pay off the debt. Collectors use more aggressive methods at work: call guarantors, work, leave messages to friends on social networks.

What happens if you don’t pay the loan at all? Sooner or later the case will go to court. If an amicable agreement is not resolved, there are no good reasons to postpone debt, then there is no point in fighting lawyers in court. All costs will be borne by the defendant. After the court decides, the lawyers describe the property and put it up for sale.



Another thing if the cause is respectful debt. If you have a medical report on ill health or a copy of the reduction order in your hands, you can and should defend your rights from the banks. If the credit institution fails to take these documents into account, it is better to go to court itself. The relevant lawyer will help to challenge the bank’s claims. There’s something to complain about. Insurance is imposed, fines are distorted and errors in documents. You must be patient in order to defend your rights in court. The court may reduce the amount due by 50% and require the defendant to provide more than 20% of the monthly income to repay the debt.