Once the whirlpool drags the debtor deep, it is not so easy to get out of there. More and more people are threatened by economic circumstances, illness or divorce, private bankruptcy, which ultimately haunts a full six years.
What is private bankruptcy?
If you can no longer overlook the mountain of your debts, you have the opportunity to register a private bankruptcy for yourself and your misery in court. The conditions for private bankruptcy are precisely regulated in the bankruptcy regulation. The economic situation of the creditor is determined here, in connection with a monthly payment obligation that is reasonable for the creditor.
If the creditor comes true to his obligations over the next six years and is well behaved, he will as a rule not have paid most of his debt. After this grace period of six years, however, the creditor is entitled to a so-called “residual debt relief.” With this residual debt relief, the bankruptcy proceedings are also terminated and the former debtor is now free of debt again.
What about a loan after the debt relief?
The debtor’s former liabilities are also deleted from Credit bureau, but this does not mean that “this customer is clean at Credit bureau.”
Even if the entries are deleted there, the former debtor will not be given credit again because the completed insolvency proceedings will be saved at Credit bureau for three years and, if necessary, passed on to mail-order companies or banks as negative information.
What are the options for a loan after the debt relief?
Since most banks obtain Credit bureau information about the applicant, it looks rather bad for a loan after debt relief, but not hopeless. One option would be a friend or family member to guarantee the loan applied for. Another variant for a loan after debt relief is an online bank. These banks often work without Credit bureau information and only require a certificate of earnings.
Since the bank’s risk to the borrower is higher than for customers with perfect Credit bureau information, the annual percentage rate here is also significantly higher. It is definitely worthwhile to consult a loan calculator online for a loan after debt relief.
An advantage is that the credit is not reported to Credit bureau and the former debtor is considered to be absolutely creditworthy after another three years with Credit bureau.