Financial organizations, when they want to get their funds back, but the debtor still does not make contact, does not want to fulfill their obligations under the loan, can act in different ways. There may be situations when they call the debtor’s relatives and ask them to pay their debts. Such actions of creditors are somewhat legitimate, and it is better to know in advance how to behave in such a situation.
Co-borrower or guarantor
Often today, when making a loan transaction, banking organizations are asked to bring the borrower to reduce their risks. There may be situations when the borrower’s salary is not enough to conclude a loan transaction, and he or she attracts a relative as a co-borrower. Not everyone understands when signing such agreements that they are now responsible for the repayment of the debt by the main borrower. If in this case, the financial organization starts calling and writing that the relative has stopped making the minimum monthly payments, you will have to pay off the debt from your own funds.
When making any loan transaction, borrowers are offered to purchase an additional insurance policy. It leads to an increase in the cost of a credit transaction, but it also has its advantages. In this situation, it is necessary to understand why the borrower stopped paying their loan debt and understand whether this reason is included in the number of insurance cases. If there is an insurance event, you will not have to pay anything for the relative, since this should be handled by the company where the insurance policy was issued.
You should try to contact the insurance company as soon as possible to find out what you need to start paying off the loan debt for your client. There may be situations when such companies try to evade their obligations and have to go to court.
The borrower refused the policy
The borrower does not always agree to take out an insurance policy, as they want to reduce the cost of the loan. The lender can demand payment of the debt from the borrower’s relatives only if the borrower has died. It is also important to know that debts from a deceased person to his relatives pass only if these relatives agree to enter into inheritance rights. If all relatives give up their inheritance, the lender will have nothing left but to write off the loan debt, because there is no one else to deal with its return.
Debts of the spouses
Many people resort to making loans during their family life. There may be situations when the debt is not paid, and the couple decided to divorce. If you follow the law, the spouses will have to divide equally between them not only the property but also the debts to the creditor. But not everyone can solve this issue independently. Often, the court is involved in resolving such issues. It is up to him to understand all the subtleties of the current loan and how the funds were spent on this loan.
A strong influence on the decision is the presence of children and who they stay with after the divorce of the couple. There are many subtleties in determining the share of responsibility of spouses and it is better to trust the court in all these matters.