Execution is a terror for every indebted person. But how can he actually meet you? How is it and what can you lose? And is there any chance of a loan for people in execution? You will find out in our article.
How does the distrainment proceed?
As a rule, execution is the ultimate way a creditor (eg a lender) can take action against a debtor. The creditor may address either the court or directly to the executor who receives the contractual remuneration, which is calculated as a percentage of the amount recovered. Although the creditor may decide whether to address a court or executor with a request for execution, execution is always ordered by the court.
However, the executor determines how the subsequent execution will proceed. Usually, the bailiff first focuses on the borrower’s financial resources. I.e. he / she will close his / her bank account and may confiscate parts of his / her salary or other income (sickness, support, maternity benefit, etc.). Only the unforgivable minimum will be left to the debtor.
If the debtor’s financial resources are insufficient, the bailiff will usually start seizing the debtor’s assets. It is important to know that confiscated can be any property which the debtor has (have it at home, using it…) – including assets that may not be its exclusive property, but as borrowed so.
Seizures can naturally come also to the seizure of immovable debtor’s property. The so-called seal is placed on the property certificate in the Land Register, which prevents the owner from disposing of the property and thus cannot sell or stop it. The property is then auctioned.
However, execution can never come by itself (I have debts, so I inevitably expect execution)! The commencement of any execution is always at the request of the creditor.
Is it possible to pay off from execution by a loan?
For people indebted to such an extent that they get into execution, the chance of a bank loan is de facto ruled out. Their only option if they want to solve their debt by credit work is to use some non-bank loan. Even here, however, they do not succeed everywhere. The loan must offer special conditions. Currently, the law limits companies and this client is often refused loans.
If the debtor’s property, including real estate, is already pledged, he must think of loans without pledge. There is only a minimal chance that a debtor with a distraint on his neck will be able to get a loan for a larger sum of money. However, smaller sums of several thousand to tens of thousands may be provided by creditors who, despite poor creditworthiness, provide credit.
If the debtor is still threatened with execution but his property is not yet seized, he may take advantage of an offer of a non-bank loan from a private investor. In this way, the borrower can also receive a larger sum of money as these loans are provided against a signed promissory note.
However, lending to insolvent and indebted clients is a very risky business for both the provider and the applicant.