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If you have arrears due, you should take specific action to avoid undesirable consequences. Debts can lead the consumer into serious trouble that is worth trying to avoid. A valuable way can be to spread the debt into installments. How to write a justification for the application for repayment in installments?
Falling into financial backlog is a problem that thousands of Poles are constantly struggling with. According to statistics from the National Debt Register from November 2018, over 2.5 million Poles have unpaid receivables for a total amount of PLN 45 billion 1. Many consumers find themselves in such trouble suddenly, from different sources and for various reasons.
Sometimes these are not paid for the payday payday, the date of which turned out to be too restrictive. Others have problems with timely repayment of installments, e.g. leasing, purchased goods in installments or a bank loan. You can enter in the register of debtors even those who do not pay rent, do not pay maintenance or have unpaid invoices on their account.
Why do consumers run into financial problems? Some people evaluate their financial possibilities poorly, without anticipating, for example, sudden expenses due to illness, home equipment failure and other random events. Others lose their jobs, which causes their financial condition to collapse. Still others become debtors because of inaccuracy, unreliability or intentional, dishonest action.
Regardless of the above-mentioned reasons, it is worth doing everything to avoid serious consequences resulting from late repayment. The most important of these is the creditor’s initiation of debt collection activities aimed at effectively enforcing the amount due. They are often preceded by charging penalty interest, the amount of which increases in proportion to the subsequent days of the debt.
If the recovery steps in the form of sending reminders or referral to an external debt collection company do not work, it may be necessary to refer the case to court. In addition to a court order for debt repayment, he can also order bailiffs. This will involve the confiscation of valuable parts of the debtor’s assets against the repayment of the liability, which, depending on the sum of the receivables, may turn out to be extensive.
In addition to the abovementioned activities, creditors may also enter data into the National Debt Register or other registers of Economic Information Bureaus. Data on late repayment may also appear in the Credit Information Bureau (BIK). This may make it difficult not only to obtain a loan or borrowing in the future, but even a good in installments, a car for leasing or rent, and even a subscription offer from the operator,
Considering the consequences described above, it is worth taking reasonable steps to avoid them. Although criminal interest for debt is usually accrued from day one in a delayed payment, the quick response of the debtor and the willingness to reach out to cooperate will certainly limit the scale of actions taken to uncompromisingly collect debts. What way should you consider to avoid the serious consequences of defaulting?
It is worth considering applying to the creditor to spread the debt into installments. In this way, you will not only show a willingness to resolve the matter peacefully, but will also document your willingness to pay the debt. By negotiation, both parties may agree on favorable terms for repayment in the form of installments, which is in the interest of both the debtor and the creditor.
In this way, the creditor will receive a guarantee of out-of-court payment of overdue payments and assurance that the money will be returned by the consumer. The debtor, in turn, by avoiding spreading the debt into installments will avoid the specter not only of the continuation of debt recovery, but also of other, further consequences (bailiff enforcement). If the debt is fully repaid, he will even be able to apply for deleting his data from the debtors register, which will improve his creditworthiness.
Installment of debt is often mediated by debt collection companies specialized in such cases, acting independently to both parties to the dispute. However, the consumer can prepare the application at home. Only the most important key information needed to complete this document should be considered. Let’s get to know them.
An application for repayment in installments must include the following information.
Is the above information all this? No. In addition to the sentence in which the debt is to be apportioned and a proposed installment of debt repayment, it is also necessary to formulate a justification. We write them below, as the last necessary part of the application for repayment in installments. In the justification, attention should be paid to the substantive and thoroughly described reason, for which one is not able to pay the liabilities in the form initially determined.
The consumer must argue his request, which is why this passage is so important. For example, in this element you can write that the consumer has been motivated to submit an application due to a financial breakdown due to job loss or other factors causing a financial and / or life breakdown. It is advisable to attach a scan of the relevant documents. For example, it can be a notice from work. Another option – invoices for expensive medicines, the purchase costs of which led to the aforementioned deterioration of financial condition.
It is also worth mentioning your monthly expenses, other obligations (bills) and any dependent family, which will be similar – confirmation with an appropriate scan of documents will be appropriate. The given circumstances are, of course, only an example – the argumentation should be adapted to the facts, which results from individual circumstances.
This application can be made in several ways. The first is to send it by regular or registered mail. Another is to send a letter with a pick-up order, which is a valuable security – when you apply for amicable debt repayment, time counts in the end. Some debt collection companies may also allow applications along with attached documentation sent by email.
What’s next? All that remains now is to count on the response of the debt collection company or creditor if the application was addressed directly to him.