Consumer life also entails a higher percentage of debt expenditure
The consumer life we have plunged into in recent years is based on financial success, high spending, and possessing a lot of things and using a multitude of modern services. But not everyone has the opportunity to live in this way and not to be indebted. However, those who are not proficient in drinking style are often excluded, especially in groups of children and young people.
Affordable loans are a risk
Non-bank loans without registers and loans without proof of income can lead to insolvency Excessive small loans with low repayments are often what causes individuals and families to become insolvent, which can only be resolved from a certain point by declaring personal bankruptcy. This will significantly slow down the rate of obligatory repayment, and it is also possible not to pay a large part of the debt, which is simply forgiven by law.
Small loans with small installments seem innocent at first sight. But only until all the payments of the month are added together and the borrower realizes that he has to pay thousands, even tens of thousands per month. In case of non-payment, the amounts are increased by fines and fees. This will result in the debtors’ inability to continue to pay all their liabilities, with the debt still increasing.
Debt can lead to personal bankruptcy, which is now easily accessible
In July of this year, major changes occurred, especially in the declaration of personal bankruptcy. While the court ruled on insolvency by July based on a complicated analysis of the applicant’s future income, showing that it would be possible to repay at least 30 percent of the debt within three years, declaring personal bankruptcy is now just a matter of formalities; The trial itself will only occur retroactively after three years of insolvency.
Of course, the insolvency trustee continues to operate here and must continue to be paid. It is the insolvency trustee at the end of the insolvency proceedings who will act as the most important witness during the period with personal bankruptcy – whether the debtor has repaid, how much he has paid, whether he has tried to make the maximum possible payments, etc.
30 percent within three years or 60 percent within two years
Insolvency remains recognized if the debtor repays 30 percent of the debt within three years. However, it has the possibility of a faster course, where 60% of the debt can be repaid within two years. There is also a new approach to debt.
The debt itself, the loan itself, has priority over the repayment. Interest, penalties and fees are postponed until it is over. This essentially means that lenders do not have to get interest and fees at all. On the part of the law, it is an incentive to lower interest rates, or lower APRC of bank and non-bank loans and to more responsible lending.
The new insolvency method saves a lot of money for lawyers
The declaration of personal bankruptcy was expensive. The analysis of the client’s future income was not quite easy, therefore the state provided for the possibility of a high fee for processing the insolvency petition. Newly it is just a simple formality, which is cheap and often available for free.