When we face a difficult financial situation, we often decide to take out a loan . Unfortunately, we don’t always manage to pay them back on time. What if we have debts and would like to pay them back as soon as possible? One of the available solutions, which enjoys considerable popularity, is an application for loan cancellation. Contrary to appearances, this solution is used really often. In the article below we explain in which situations it is possible to write off part of the debt. We invite you to read carefully!
Loan cancellation application – the most important information
The creditor’s cancellation of the debt means that the debtor no longer has to pay it back. This applies not only to the present time – it is a permanent solution. The use of redemption also results in the expiration of all accessory collateral for claims, such as a mortgage, pledge or surety.
How to apply for a loan cancellation?
If we want to apply for the loan to be redeemed , and really part of the debt, then we need to get started quickly. One should not wait with arms folded and think that “somehow it will be”. The first thing to do is contact the creditor and start negotiations. Depending on our preferences and expectations, we can submit a request to suspend interest, split the debt into smaller installments or even write off some part of the debt.
If the first stage of negotiations ends with the signing of the settlement, the debt collector will not go to court. In turn, we will not have to pay additional fees related to the conduct of the proceedings. In order for the loan to be canceled, the debtor must accept the waiver declaration made by the creditor. As indicated in Article 66 of the Civil Code, until such a declaration is signed, this document is only an offer that does not bind either party to the dispute.
Cancellation of the loan – when can the creditor write off the debt?
When can the creditor write off the debt? Most often, creditors agree to cancel the loan when the debtors are insolvent. If it comes to processing with insolvent contractors, it can take a very long time. In addition, it obviously generates very high costs for creditors. Such a lengthy procedure is not only inefficient, but also tiring. Therefore, instead of investing their funds in uncertain actions, creditors prefer to abandon them.
It is worth knowing that the basis for applying the debt cancellation procedure is the debtor’s statement that he has accepted debt relief. The debtor’s consent may have various forms – for example, a written statement or a special settlement with the creditor. It is important that it is clear from this document that the debtor is entitled to a claim and the will to resign from it. In most cases, debt cancellation is completely free. However, you can charge for the preparation of such a document.