Difficulties in repayment of a loan

Difficulties in repayment of a loan can be most effectively avoided by realistically assessing your ability to pay and through thorough groundwork prior to accepting any financial burdens. However, if you are experiencing difficulties in repayment of a loan, the best solution is communication. You should discuss the situation among your family as well as the loan/lease/credit card/instalment provider to solve the situation. You may also turn to a debt adviser or the Consumer Protection Board.

In case of difficulties in repayment of a loan
  • Do not let default interests, interests or other costs related to debt pile up, immediately get in contact with the lender and explain your situation,
  • Try to jointly find the best solution for you (such as one-time deferring of a repayment, changing the repayment schedule, a grace period, exchanging or selling purchased assets),
  • Find out whether and which costs relate to the solution and be honest with the lender if there are too cumbersome for you,
  • Keep in mind that if the amount of default interests and interest have become extremely high, you have the option of asking a court to decease unreasonable accessory obligations,
  • Keep in mind the lender has to explain in court the reason for filing a claim against you and you have to explain and give evidence as to why it is difficult for you to pay such large default interests and interests and bare other costs,
  • Keep in mind you also have the option of asking the court to go over the limitation period of the claim.
  • Let the creditor know you are interested in finding a solution to the problem.
  • You have the right to submit through a court: an objection to the limitation period of a claim; a claim to decrease default interest, interest and other costs; an allegation for claim nullity (for example, if there were terms and conditions in the contract that were unreasonable harmful to you); a claim for decreasing procedure expenses and legal costs.
  • If the court comes to a decision, you are required to execute the decision as the decision will otherwise be subject to compulsory execution, plus execution proceeding costs will be added.
  • The most extreme case is declaring civil bankruptcy.