Can credit card debt be enforced

Consequences of Debt: Collection Agencies and Other Consequences

The most important thing about the consequences of debt

When exactly can debt become a problem?

As long as you always pay your debts - for example your loan or the installments for a major purchase - on time, these debts are problematic. But as soon as you realize that you can no longer pay your bills, you should act as soon as possible. If necessary, seek advice from a debt counseling center or try to negotiate a debt settlement solution with the creditor.

What are the consequences of debt?

Sometimes creditors turn on a debt collection company and hire them to enforce their monetary claims. Such a collection threatens additional costs.

What else can happen if I no longer pay my debts?

In the worst case, the creditor will enforce his claims in court, for example by means of a judicial dunning procedure or a lawsuit. If he has obtained an enforcement title in this way, the creditor can now initiate enforcement measures.

Detailed information on the consequences of debt

Detention for debt, collection, warning, insolvency, foreclosure

Those affected must reckon with these consequences of debt

Everyone has experienced this situation before: you forgot to pay a bill and some time later one flutters warning into the house. At first this is not a problem if you settle your bill promptly. In the worst case scenario, you'll need a small one Reminder fee numbers. In difficulties a debtor only comes when he permanently fail to meet its financial obligations can.

If he can no longer pay due claims, he is deemed to be insolvent. If the debtor's assets do not cover the existing liabilities, the debtor is even deemed to be over-indebted. Now is the time to act in order not to end up in a vicious circle and not to drive up the debt even further.

Creditors have various options for enforcing their claims. These are sometimes very expensive. And most of the time, these costs are borne by the debtor, whose indebtedness continues to rise.

Debt collection agency collects debts? There is a risk of costly consequences!

Are particularly notorious and feared Collection agencies who collect the debt instead of the creditor. Often times, the letter from such an office is in indicating that the Debt already too high is. In this case, too, is one professional debt counseling strongly recommended to avert the associated consequences of debt.

A particular danger lies in the high Costs caused by the activity of a debt collection agency. The incoming payments from the debtor do not immediately pay off the outstanding claim. These will first offset with the collection fees and interest and only then with the actual claim.

If you receive a letter from such a company, you should first checkwhat to you Costs, collection fees and interest will be charged will and what requirement is asserted. Let yourself be by one Debt counseling or one Lawyer advise on how best to proceed and which of the billed costs are allowed at all.

Legal consequences of debts: dunning and enforcement procedures

If the debtor Failure to meet payment deadlines, the creditor can make his claims in one judicial dunning procedure assert and obtain a dunning notice. Even if the debtor written requests for payment ignored, the believer can choose this way.

Because of this, it is very much risky to leave mail and reminders unopened. In the worst case scenario, you will not find out that such a procedure is being initiated against you and you will miss the Deadlineto take action against this.

The debtor can e.g. B. lodge an objection to the payment order. If he does not do this, the believer has free rein to find one Enforcement order and with it one enforceable title to obtain. With this he can Attachment measures initiate, e.g. B. a garnishment of a salary or an account. Previously, the debtor may be to Submission of an asset report requested if the bailiff allows a corresponding request from the obligee.

Avoid further consequences of debt with the help of debt counseling

People in debt can do that various help offers take advantage of. On the one hand, the state or public debt counseling free help, which unfortunately often comes with long Waiting times are connected.

On the other hand, the destitute can use a Counseling aid certificate from the competent local court Lawyer instruct. This offers professional support and often also one Bankruptcy advice if this becomes necessary.

Overview of the main consequences of debt

  • Cause reminders from the creditor Dunning fees.
  • With high debts, creditors often hire one Debt collection agencies.
  • If the debtor does not pay on time and thereby causes damage, he must also compensate this default damage.
  • A Negative entry at the Schufa further reduces one's own creditworthiness.
  • If you fail to meet your payment obligations or a corresponding request by the obligee, the obligee can im judicial dunning procedure enforce a payment order against you.
  • If the debtor does not object to the Payment order one, the believer can do one in the next step Enforcement order obtain.
  • The bailiff can direct the debtor Submission of an asset report request if a creditor so requests.
  • As soon as the creditor knows the financial circumstances of the debtor, this threatens Foreclosure measures, e.g. B. in the form of a garnishment of salary.
  • In the event of (threatened) insolvency or over-indebtedness, the debtor can Apply for personal bankruptcyunless he can reach an out-of-court settlement with his creditors.
  • One of the worst consequences of debt with the landlord is Homelessness and homelessness.
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Consequences of Debt: Collection Agencies and Other Consequences
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