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Friday, 11.10.2024, 19:32
About the bankruptcy of individuals in Latvia
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:
- The insolvency process
consists of two successive stages: procedure of bankruptcy and the
procedure for repayment of obligations of the debtor.
- During the process of
bankruptcy, the issues concerning the existing property of the debtor will
be resolved.
- In the process of
repayment of the obligations, the debtor will repay part of its debt
obligations to creditors according to his financial capabilities.
- At the end of the process
of repayment, if the conditions for insolvency are met, all debt liabilities
of a debtor will be repaid.
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]