Even the most conscientious borrower may not be able to pay off a loan obligation - no one is insured against job loss or illness. However, you do not have to immediately sell the last shirt to pay off the loan. It is possible to postpone payments or even get rid of the loan altogether!
How to legally defer loan payments?
If you have problems with money, you can try to negotiate with the bank to revise the payment schedule - to extend it for some time or even achieve a "vacation" (pay only interest, and postpone payments on the principal for a reasonable time). Also, relatively recently, such proposals of banks have appeared, such as on-lending at a lower interest rate, consolidation of several loans, etc. This behavior can provide an opportunity to find a new job, a part-time job, or another way out of this difficult situation.
How is it legal not to pay a loan at all?
Of course, not paying a loan is not at all the best way, but in such a difficult situation you should not listen to horror stories that collectors, bank employees or other people can tell. No one has the right to make claims to the relatives of the defaulter (if they did not act as guarantors when receiving the loan), and, moreover, no one has the right to physical violence.
If there is no opportunity to pay a loan and will not be, then it is worth talking to a competent lawyer. He may, for example, advise you to try to invalidate the loan agreement, consider such a path as bankruptcy. At the same time, it should be understood that such options will also require significant costs, and success is not guaranteed. The fact is that even if you hide the existing property, there may be attentive representatives of the creditor or justice who recognize the transactions of transferring property to third parties invalid. Well, if the borrower really does not have property to be sold at an auction during bankruptcy proceedings, he can be declared insolvent and released from debts.
There is also an option to buy out debt from a creditor or collectors by third parties. This is a rather profitable option, since the amount that may be required for debt is 20-50% of its amount. However, like other options for resolving this conflict, it has no guarantee of success in negotiations.
The last way out of an unpleasant situation with a loan is to use the statute of limitations, which is 3 years from the date of the first delay, if there were no contacts between the lender and the borrower all this time. At the same time, the absence of contacts will have to be proven in court.
