Archive March 2019

Loan despite debt relief – 30 banks help

More than 8 million people in Germany are overindebted. They can no longer pay their debts in full and therefore have already made acquaintance with a negative Private credit. Often, the debt builds up over many years. They manifest themselves more and more firmly in the lives of those affected and become a major burden. Not infrequently, the load can only be stripped off if insolvency is sought. The last step after a long period of despair and struggle. Because most debtors first try to get their debt under control on their own. They are re-planning their expenditures, agreeing with creditors on various repayment models, and doing everything they can to reduce the debt burden.

If only small debts have accumulated, then this may also work. With somewhat larger debts, however, this usually does not work and insolvency is the last resort. This brings not only a debt relief, but also very narrow-minded procedures and regulations that the debtor must comply with, so that the bankruptcy can be connected after six years. Among other things, no new debts may be accumulated during the period of good conduct.

Often, however, a financial injection is needed despite all this. Because life has to go on and the debtor is obliged to do everything so that as many debts as possible can be settled during the conduct phase. If a loan has to be taken up in such a phase of life, then this must be a loan despite the absence of residual debt.

Who grants a loan despite the release of residual debt?

Who grants a loan despite the release of residual debt?

There will be a lot of rejection in the search for a loan despite the absence of residual debt. Because no bank likes to forgive such a loan. Therefore, it is advisable to take out the loan without asking the Private credit. If the Private credit is not queried, no one notices that there is a residual debt exemption, so that it can not be included in the assessment of the loan application.

Loans without the inquiry of Private credit are given by credit intermediaries or banks from abroad. Large credit brokers such as Crediter have portals on the Internet, over these the loan inquiry and also the admission of the credit can take place despite remaining debt relief. They work with private lenders who can freely decide whether or not to support the loan.

Foreign banks are not allowed to query the Private credit and therefore recommend themselves especially for a loan despite the absence of residual debt. It would be important here that a high income from a permanent position is available, so that the loan request can be met.

Whoever awards the loan in the end does not really matter. With the help of a comparison it can be seen which provider offers the best conditions. When comparing should be paid not only to the interest. Also, the repayment terms and the service around the borrowing should not be lost sight of.

What must be considered for a loan despite the absence of residual debt?

What must be considered for a loan despite the absence of residual debt?

A loan is only possible during this phase of life if the insolvency administrator agrees to it. An additional hurdle, but this must be taken necessarily so that the borrowing does not lead to a rejection of bankruptcy. Anyone who takes out a loan despite the insolvency administrator’s approval despite the absence of residual debt may lose the right to the insolvency proceedings. Then all debts would be present again and a new procedure can only be sought after many years.

The insolvency administrator will agree to the loan, despite the absence of residual debt, only if it is really necessary. Luxury items can not be financed with it. However a vehicle, which is absolutely necessary for the daily way to work.

In addition, no large loan amounts are approved. The insolvency administrator will wave a maximum of a small loan. It is also important to speak to the insolvency administrator in person and authorize the loan in writing. Verbal agreements could not be binding in an emergency.

Loans for disabled pensioners

Are you a pensioner with a disability pension? Are you wondering if you can get a loan through this pension? Now let’s go into the whole discussion, giving you a lot of useful information. Meanwhile, good news: a loan on the disability pension is granted without problems, just offer the necessary reimbursement guarantees.

There is no reason why a bank should not grant a loan to someone who is in a state of disability. However, you must always ask the institution for advice to clarify the pathology you are suffering from and check the economic reimbursement possibilities.

The disability pension can be used as a guarantee to request the loan, we say that the granting of the loan therefore will depend substantially on the will of the bank and on the assessments of the institution.

How loans for disabled pensioners work

How loans for disabled pensioners work

In general, if you are disabled or not retired, it does not count. Banks always make the usual assessments when they have to decide whether to grant a loan or not.

The requirements necessary to obtain one generally concern:

  • An immaculate credit history
  • Do not exceed certain age limits for the applicant

Generally the age limit is around 75 maximum years for debt relief, while for the other aspect you need to be sure that you are not protested and that you have never been reported as a bad payer.

Finally, assess the amount of your disability pension. If you are affixed with the first two requirements we have mentioned, all you have to do is make sure that the sum you receive monthly is substantial enough to convince a bank to provide credit.

Unfortunately there are cases in which the invalidity condition could affect the request for the outgoing loan. Many lenders may be less inclined to grant credit if the chances of the applicant’s death being too high.

Types of loans granted to disabled pensioners

Types of loans granted to disabled pensioners

Disabled pensioners offer their pension as collateral for the loan. The bank will get the payment of the installments right on your pension that you receive monthly, so that the repayment is guaranteed.

What’s the problem? The condition for this to happen is that the withdrawal made by the bank does not affect the quality of life of the applicant. So the amount of the monthly installment must be calibrated to achieve this goal.

Cession of the fifth for disabled pensioners

Among the most common types of loans for disabled pensioners there is the assignment of the fifth. This is the kind of loan that is perhaps the easiest to obtain because the installment will hardly be such as to prevent the person who will have to support it, to live in a peaceful manner.

The reimbursement of the fifth assignment takes place by direct withdrawal from one’s disability pension. The installment with the assignment of the fifth can never exceed 20% of the total amount that is perceived as a pension.

As anticipated, however, even the assignment of the fifth is a formula that requires the assessment of the type of disability and the risk of death of the applicant.

As required by law, the loan is protected by an insurance policy, which is added as a cost in the installment. The insurance covers precisely the risk of death, but the bank is not willing to grant the credit if the risk is too high.

Apply for a loan

Apply for a loan

Let’s say you have all the requisites necessary for the loan request, how you need to proceed, which documents are necessary?

In the moment in which the official request is made, it is essential to present the documents attesting the monthly entry and personal data. The bank then, in order to understand what kind of disability we are talking about, requires the medical documents that attest to the type of problem and disability, so it will be able to calculate the risks related to the loan.

The physiological condition of the applicant is often evaluated also by a commission relating to insurance on loans for salary loans, which as mentioned are mandatory by law in this type of loan.

Cases in which the bank refuses the loan

Cases in which the bank refuses the loan

The granting of the loan on disability pensions is not always easy to access. The risk of death and of not being able to repay the sum for some medical reason are too high.

The bank runs the risk that it cannot be redeemed on disability pensions in the event of insolvency. Here is a list of cases where there is little or no chance of receiving funding in a handy list:

  • In case of too serious diseases
  • In the event of a high probability of death
  • Disability pension too low
  • High risk of loss of the invalidity pension by the applicant