Too many debts – How to reduce the weight of the installments
Too many debts to pay: what to do and who to contact
Who to contact when you have too many debts to pay?
Are there any differences if there are debts with Astro Finance (see also How not to pay Astro Finance ), a bank or a financial institution?
In a nutshell, what can you do to be able to find a little peace and settle your financial situation?
Often we let ourselves be overcome by anguish and we lose sight of the goal to be reached, and consequently we find ourselves facing insurmountable obstacles. Let’s see the various alternatives available.
What to do in the case of a mortgage or a loan?
The first thing to do is to see why the debts have become ‘too many’. For example, if the ability to repay has decreased, because one of the family members has lost their job, died or is in a situation of disability or illness, the moratorium on mortgages or loans can be used. What does it involve? For a maximum period of up to 18 months the installments will be suspended, thus giving the breath to those who must repay them. This does not mean that they will no longer be due, but simply that they will be put on the back of the repayment plan, which will be extended by the same period.
There is a difference between mortgage payments and consumer credit loans. For the latter, the financial company may also decide to suspend the entire installment (principal plus interest) or ask only for payment of the principal amount. If you do not fit into these ‘hypotheses’ you can try to see if you can access the ‘ loan of hope ‘ (or a similar measure), or proceed with the system provided by the Consumer Plan.
Consumer plan: conditions and requirements to access it
The Consumer Plan was born following the approval of the decree “Composition of the over-indebtedness crisis” which structured and defined the contours of the modality through which, following a specific procedure before a judge, it is possible to obtain the reduction of debts which must actually be repaid.
These debts must be contracted by the consumer for activities or purposes that are not part of the business or profession. Furthermore, they must be objectively non-refundable given the debtor’s current situation, which at the time of settlement had to be in good faith.
Times and procedure
The duration of the procedure is not foreseeable, but it is certain that it cannot be presented before 5 years have elapsed since the last time it was used by the same debtor. As regards the procedure, all the necessary documentation must be collected to allow the judge to make the appropriate assessments. It must be said that this solution can also cover debts with Astro Finance.
To present the request for access to debt relief, you must use an independent professional (lawyer, notary, accountant, etc.) or made available by a consumer association (to assess the cost of the fee). The professional will help in defining a reimbursement program for the part of the debts that are “sustainable” given the debtor’s current situation.
The judge of the territorially competent court will have the task of ruling on the admissibility of the request and on the feasibility of the proposed plan. If approved, the creditor will have to settle for the reduced debt.
The Astro Finance Scrapping
With the announcement of the scrapping of the Astro Finance “system” a facilitated system was also set up for the repayment of tax assessments. The application for membership must be made before March 31 and it is possible to request that the payment of the amounts of the folders ( net of fines and interest ) can be paid in installments up to a maximum of 5 installments (reimbursement estimated estimated within 18 months of the 5 installments). Also in this case it is good to have the assistance of an accountant or a consultant.
Do you have difficulty paying off your debts with banks, finance companies or tax authorities?