Debt is a civil relationship that occurs frequently and is common in daily life. So, when you are insolvent, how do you handle it?
Insolvency is the situation of many people today. Due to objective and subjective reasons, borrowers cannot make payments on time or even lose their ability to repay. So in this case, how should they handle it, are they legally prosecuted or not? Check out the article to find out now!
The property loan relationship is a transaction that carries many potential risks. To limit such risks, Vietnamese law has prescribed measures to secure the performance of payment obligations such as pledges, mortgages, guarantees, etc.
Since then, when the borrower is insolvent , the lender has the right to handle the mortgaged property, the pledged property, etc. Or the borrower can request the guarantor to perform the debt repayment obligation on behalf of the borrower.
In case the borrower has no collateral, the mortgage is insolvent, the lender has almost no chance to get the property back. At that time, the lender must initiate a lawsuit to a competent court for settlement according to civil procedures.
The court will issue a judgment to determine how much and when to pay the debt. The two parties can voluntarily agree on a payment method based on the judgment (voluntary enforcement).
If the borrower does not voluntarily comply with the judgment, the lender has the right to request the judgment enforcement agency to enforce the judgment.
Borrowing will only turn into a criminal relationship if it falls into one of the following cases:
- The police agency has enough documents and evidence to prove that the borrower is not intending to borrow money but is just a fraudulent trick to appropriate property. Fraud trick is to give untrue and untrue information and documents to make the victim misunderstand and hand over the property. After receiving the victim's property, there is no intention to return the property. appropriation); In this case, the person who appropriates the money will be prosecuted for fraud to appropriate property (Article 174 of the Penal Code 2015).
- Borrowing, borrowing or renting property of another person or receiving another person's property in the form of a contract and then using fraudulent tricks to appropriate such property or by the time limit for returning the property, even though there are conditions, ability but deliberately did not pay. In this case, they will be handled under the crime of abusing trust to appropriate property (Article 175 of the Penal Code 2015).
- Borrowing, borrowing, renting property of another person or receiving another person's property in the form of a contract and using that property for illegal purposes leading to the inability to return the property. In this case, they will be handled under the crime of abusing trust to appropriate property (Article 175 of the Penal Code 2015).
Don't let anxiety crush your mind, don't lose faith. It is important to show goodwill to the creditor, showing them a possible repayment option .
● Psychological stability
When the business they invest in fails, falls into a state of debt , investor psychology will often fall into a state of disappointment and bewilderment. Any decision at this ill-advised time could make the situation worse. Therefore, do:
Determine the cause of failure.
+ Zoned debts.
+ Reassess your own resources: strengths, existing assets, relationships that can support, ...
● Do not take out a loan to pay interest
The immediate thing is to solve interest-earning debts, if you want to rebuild your life , don't let interest become capital and generate more interest. Because such a solution only makes you fall into a vicious cycle of debt, unable to get out.
● Debt freeze, debt rescheduling
Accepting the current situation, publicizing your status with creditors and negotiating for them to freeze and delay debt is what you should do now.
Negotiate with creditors to freeze the principal and repay the principal in installments. Then, balance your personal finances so that you can periodically pay your creditors once (although the amount is small, the creditors will feel secure and see goodwill).
It is important to show goodwill to the creditor, showing them a possible repayment option. No creditor will force you into the dead end for the ultimate purpose, they also want to recover the money.
In case the debt is a bank debt, if you have a bad debt at the bank that is no longer able to pay, do not hide, but disburse the mortgage as quickly as possible to repay the bank debt. Or can explain to the bank a feasible business plan for debt restructuring.
● Leverage and re-plan existing resources
Let's make a list of existing assets, used to pay debts. Anything worth selling, mainly to pay the loan and bank interest (if any), do not regret anything.
You can spend more than 3 billion in two years, you can also earn that money back in a certain time in your life.
Make a list of old customers, partners, friends, family members or sponsors. Schedule a meeting with them to ask for help. Analyze to show them the cause of your failure and come up with a possible plan to get yourself out of this dead end. Maybe they will help you get a loan.
Do not forget that family is always a strong support. Rely on it for more strength, maybe not material or some money, but love and spiritual comfort.
Insolvency is not without a solution if you calmly analyze and handle it. Many successful people come up from default because debt is sometimes not only a pressure but also a motivation for you to try and strive. Good luck.