The insolvency or bankruptcy Natural Person

The overhang is the inability of a person to pay debts on time and agreed terms, a situation that concurs that the amount of their income is lower than the periodic payments and expenses necessary for survival. This has affected individuals and family environment, being the main reason that lha increased insolvency and bankruptcy. The origin of the indebtedness is:

1 .- excessive indebtedness incurred in the last six years.

2 .- Increase in house prices during this period.

3 .- Growth rates in the past year and a half.

4 .- Excessive consumer credit and high interest rates contracted operations.

5 .- Family Crisis and increased cost almost double, in cases of separation and divorcio.6.-the financial and housing crisis, dragging individuals into a situation of insolvency and inability to pay its obligations.

In response to the causes that lead, we can distinguish two types of indebtedness, including:

A) indebtedness asset: Your home is abuse of consumption, money provided by the tarejtas credit, overdrafts, interest rates or ordinary remunerative between 12-15% and default interest of 29% and so on.

B) indebtedness liabilities: Its origin is in the supervening impossibility of meeting the periodic payment obligations because of a change likely occurred some circumstances and family economic conditions (unemployment, enormous growth of interest rates, inflation, housing prices).

Regardless of the bankruptcy law, only the law 50/1965 of July 17 installment sales law of personal property, considering the possibility, exceptionally and appreciated just causes discretion (family misfortune, accident) to the judges and courts moderate note new deadlines and penalty clauses agreed.

The application of the bankruptcy law to individuals has improved the treatment for active insolvency (consumption, gambling, etc.). In case of being in this case, to apply Article 2 LC, for the common debtor or person. Your debts are loans, loans, overdrafts, unsecured interest-bearing by the simple declaration of bankruptcy, suspends the accrual of interest, according to Article 59 LC. Those involved will negotiate an agreement with waivers and delays, adjusted to the real possibilities of the debtor.

On the liability occurred in good faith there will be a creditor secured by mortgage on the family home will not negotiate or accept or wait until you remove the guarantee. Unless an agreement is approved, to remove, in the settlement there is no debt forgiveness. If you are thinking of bankruptcy under the Act to declare bankruptcy of a natural person, married, single or divorced, you and your attorney must be convinced that this is the only alternative and solution to your problem after reviewing the cost, moral and psychological for this and especially consider what goal is pursued with it.

You can not present the meeting of creditors of an individual if the credit is important or virtually no mortgage, because the cost is too high to not get any advantage. In this case it is reasonable to negotiate with the creditor, out of court, a distinct alternative to foreclosure. Negotiations based on the reconciliation of interests possible a settlement agreement procedurally cheaper and equally effective if both parties adhere to the signed.

If you are in a situation of insolvency with one or more creditors and need a mediator budget request on our website.