It is enough not to communicate with the bank, avoiding negotiations for three years for the creditor to write off the debt – such an opinion is common among those who are faced with the problem of non-payment on the loan. Emphasis is placed on the fact that the statute of limitations in Russia is 3 years. As a result, borrowers themselves exacerbate the situation, bringing it to extremes, accumulating long-term debts and fines and leaving a sad inheritance to their children and loved ones.
In fact, banks have long learned to work with debtors and correctly apply the limitation period. It is impossible to predict in advance whether there will be a chance for debt relief due to the expiration of the statute of limitations, because it is calculated according to a complex scheme, taking into account many nuances. Sad but true: borrowers are mortal, unlike credit debt.
When does the statute of limitations begin
To understand how to act and what are the prospects for the use of limitation, it is necessary to look for information in the loan agreement. If this is not specified in the contract, the default is counted from the time the delay occurs. The date is recorded in the written requirements of the bank or the collection agency involved, and the notification itself is sent to the borrower’s address by registered mail.
If in the text of the letter the claimant indicates a new term set aside for the repayment of the debt, then the statute of limitations will be counted from it. The bank has the right to demand from the client not only to pay off the arrears, but also to fully repay the entire amount if the amount of delay has reached 3 months.
Other circumstances may extend the validity period:
- If the debtor has made a payment, partially satisfying the creditor’s claims, the limitation period will be re-calculated from the day the new delay appears.
- When contacting the bank with a request for restructuring or granting a deferment, the time interval begins anew.
- If an agreement has arisen between the bank and the client, the limitation period stops altogether.
Do banks have the right to demand debt upon expiration?
Despite the existence of legislation, banks often seek to cancel the limitation of actions through the courts, in the lawsuit of the case. The court decides in favor of the bank, demanding the return of the entire amount of the remaining debt on the basis of established facts of an earlier appeal to the court. Thus, the bank has the right to file a lawsuit within the limits of the lawsuit, and consideration in court occurs much later.
To cancel a statute of limitations, the bank often presents evidence that the work with the debtor did not cease during the past period. A documentary confirmation of the creditor’s statements will be letters with pre-trial claims and even telephone calls.
From this the conclusion follows: it is not possible to wait 3 years until the bank debts the credit debt and the interest that has not been received. Regardless of how “successfully” the debtor hides from the creditor, his debt is transferred to the collectors at any time. And their work tools are far from the norms of ethics that banks are trying to stick to. Statistics show that bad debts, the delay on which exceeded 3 years, are successfully recovered in 15% of cases. The work of collectors is based on other principles, and eight-year debt is a common practice for a claimant acting on a defaulter, his family, environment, employer. Successful results show litigation initiated by collectors.
Debt is immortal, unlike borrower
The saddest thing is when a client hopes to write off a debt, but even after his death, his family faces the problem of the impossibility of accepting an inheritance. The death of a person removes only the requirements in relation to him personally, but does not exempt from the financial obligations that the defaulter left to his children and grandchildren.
Based on Art. 1112 of the Civil Code of the Russian Federation, debt and financial obligations are transferred to persons claiming the inheritance. It often happens that the value of the entire property does not cover the amount of the remaining debt, accrued interest and fines. In such a situation, people who decide to accept the inheritance receive obligations for the deceased person, and when the sale of the hereditary mass did not allow to pay in full, the remaining debt is already collected personally from the heirs.
The person inheriting the property of the debtor faces a choice: to redeem the debt of the deceased or to refuse real estate or valuable things with which he used the borrower during his lifetime and expected to receive property rights. In case of refusal to inherit property along with debts, the estate will be sold by force by court order.
Civil law does not allow heirs to divide the rights and duties in inheritance. According to Art. 1157 of the Civil Code of the Russian Federation, debts and rights to property are inseparable – the heir either accepts them in full or waives them. If there are several heirs, the debt is distributed to all participants of the inheritance process according to the shares claimed by citizens.
Although the heir is not to blame for the formation of the debt, after accepting the inheritance, his credit history will deteriorate if he does not repay financial obligations in the time allotted by the lender. For a bank, accepting an inheritance only entails replacing the borrower’s side; accordingly, further proceedings and claims await persons who have inherited the debts of the deceased.
Based on the provisions of the law, you should not expect that the non-performing debt will be written off after death. Unlike the debtor, it continues to exist safely and grow over time. And in case of problems with the payment, the heirs will have to talk with creditors and collectors, regretting the decision made.