Latvia, Legal Counsel, Legislation, Markets and Companies

For the reason of low income, building or buying housing, buying a car due to own accumulation is almost impossible. The most common way to solve the problems is take a mortgage loan or leasing in the bank. Currently, the banking sector offers plenty of attractive credit programs for the population in terms of buying cars and housing in new buildings or in the secondary market of real estate. The advantage of mortgage loan is the ability to move and live in the new housing right after the registration on the mortgage; however, it is necessary to consider that the housing acts as pledge according to such transaction.

If the loan is issued, it is worth remembering that there is always a risk that paying a monthly fee would be impossible, because of job loss or other unforeseen circumstances. In other words, if the client becomes insolvent, then the bank can impose fines and collect a subject of pledge through the court. Quite often collected percent on a mortgage accrued by the bank grow to the considerable sum, and the market value of the apartment or the car, realized after collection, cannot cover the full amount of the debt. In the end, the client of the bank is not only left without housing, but also gets to debt dependence for many years.

What to do in this situation?

There is a solution!

In accordance with the insolvency Law of Latvia, the debtor-private person may apply to the court to begin insolvency process, if he is not able to repay its debt obligations, which term of performance has already come, and size of which is at least 5 000 EUR, or deadline to the debt obligations will occur within one year and the size of which is 10 000 EUR.

If the court makes the positive decision and will declare the insolvency process of a private person:

1. The insolvency process consists of two successive stages: procedure of bankruptcy and the procedure for repayment of obligations of the debtor.
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3. During the process of bankruptcy, the issues concerning the existing property of the debtor will be resolved. 
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5. In the process of repayment of the obligations, the debtor will repay part of its debt obligations to creditors according to his financial capabilities.
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7. At the end of the process of repayment, if the conditions for insolvency are met, all debt liabilities of a debtor will be repaid.
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How to initiate bankruptcy process of a private person?

To protect the interests of the clients of the bank or any other person, who is a due to objective reasons has become insolvent is possible if to turn to the professionals!

Our lawyers will free of charge consult you on all the nuances of the upcoming procedure and in the framework of the provision of qualified consulting services will offer to make a contract on providing legal assistance to a client. Legal advice includes preparation of documents for the court for the court for the commencement and completion of the insolvency process, dealing with creditors and insolvency administrator, advising the client during the entire insolvency process, preparing all necessary documents during the process of insolvency.

Our lawyers are leading experts in their field and have helped many clients who have lost the ability to pay monthly payment on the mortgage and are not capable to independently handle the debt obligations.

We will help you to cope with debt and to start life with a clean slate without a single debt!

We will carefully analyse your problem and find the correct path and decision!

Contact information

Phone: +371 67299776, +371296 216 15

E-mail for a free consultation: [email protected]

www.inlatplusinter.lv