Unable to pay Large Sum Personal Loan

7 posts in this topic

Recently i lost my job and i am on Arbeitlosgeld now.

I have a personal loan from a bank of around 74000 outstanding.

now i cant pay the installment of 1168 per month.

i dont have any insurance for this loan amount.

 

so my question is what options do i have now

can i ask bank to freeze the installment for sometime until i start a job then i will be able to pay?

or should i engage i lawyer to deal with this

 

is there would be any criminal case against me because the loan amount is very big?

 

also i am getting eligible for the German passport in August 2021, is this going to effect that ?

 

thanks 

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(I answer you using common sense, this is not professional advice):

 

Did you have to put something as collateral for the loan, like property or a financial guarantee provided by a third party?  If that was the case, it is probable that the bank would try to execute on that collateral to resolve the debt. Although normally banks are willing to renegotiate conditions in order to continue with the repayment of the loan.  If they are open to this, they will renegotiate in their favour (you will end up owing more in exchange for extra time or lower monthly installments).

 

If there was no collateral and you can prove that you did not incurred in fraud (you did not lie to them in the loan application or provided false documentation), then it is on them to take the loss from your inability to repay the loan.  It is called “bad debt”.

 

You will however not come “clean” out of this mess. Your credit score will take a massive hit and you will most likely have a lot of trouble getting financing in the future.  If you declare bankruptcy, you might also not be able to own property or other assets for a certain number of years or they could be repossesed by the parties to which you owe money.

 

As for your german passport, I have no idea.  But if by passport you meant that you are awaiting to be awarded naturalization, then yes, most likely you will be denied naturalization at the last minute because your financial situation has changed.

 

Sorry if I am the bearer of bad news and I hope you find a job soon and can manage to solve the situation.

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You should be able to come to an agreement with your bank in which they temporarily waive the loan repayment and you only pay the interest. Would that help already? If so ask for "Tilgungsaussetzung". If not you may contact a "Schuldnerberatung" for advice.

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4 hours ago, flapjacks said:

(I answer you using common sense, this is not professional advice):

 

Did you have to put something as collateral for the loan, like property or a financial guarantee provided by a third party?  If that was the case, it is probable that the bank would try to execute on that collateral to resolve the debt. Although normally banks are willing to renegotiate conditions in order to continue with the repayment of the loan.  If they are open to this, they will renegotiate in their favour (you will end up owing more in exchange for extra time or lower monthly installments).

 

If there was no collateral and you can prove that you did not incurred in fraud (you did not lie to them in the loan application or provided false documentation), then it is on them to take the loss from your inability to repay the loan.  It is called “bad debt”.

 

You will however not come “clean” out of this mess. Your credit score will take a massive hit and you will most likely have a lot of trouble getting financing in the future.  If you declare bankruptcy, you might also not be able to own property or other assets for a certain number of years or they could be repossesed by the parties to which you owe money.

 

As for your german passport, I have no idea.  But if by passport you meant that you are awaiting to be awarded naturalization, then yes, most likely you will be denied naturalization at the last minute because your financial situation has changed.

 

Sorry if I am the bearer of bad news and I hope you find a job soon and can manage to solve the situation.

 

I didnt put any collateral or this loan.

I hope i will get a new job soon, in the meantime if i get some relaxation from the bank then all will be good for me.

yes i am waiting for the naturalization, so offcourse i dont want it to get effected.

so would it be wise to engage a lawyer to deal this matter with the bank or should i try myself to speak with the bank?

 

thanks anyway mate

4 hours ago, flapjacks said:

 

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3 hours ago, jeba said:

You should be able to come to an agreement with your bank in which they temporarily waive the loan repayment and you only pay the interest. Would that help already? If so ask for "Tilgungsaussetzung". If not you may contact a "Schuldnerberatung" for advice.

 

i will try to call the bank tomorrow and ask for temporarily waive the repayment which will make my life easy for now. i hope it will work and help me.

 

Schuldnerberatung is covered in rechtschutz or not?

 

thanks

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6 hours ago, Cash1 said:

Schuldnerberatung is covered in rechtschutz or not?

I very much doubt it. But there are some which provide a free initial consultation ("Erstberatung"), which might be enough in a case like yours. Consumer protection organisations ("Verbraucherschutzzentrale") or churches (e.g. Caritas) should also offer it for cheap or even free.

 

6 hours ago, Cash1 said:

i will try to call the bank tomorrow and ask for temporarily waive the repayment

I doubt the bank will waive all of the repayment. I thought of waiving the repayment of capital only while you keep paying the interest. E.g. if your monthly payment was composed of € 1000, € 500 of which was mere interest and the other € 500 repayment of capital then I think it´s common that they´ll agree that you only pay the interest for some time.

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A lawyer will just cost more money. Go to the Verbraucherschutzzentrale and ask for advice there. This is happening for a lot of people I guess at the moment. The bank will probably prefer to engage and restructure the loan so it keeps getting something rather than nothing. This is especially true of unsecured loans.

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