Over-indebtedness, the steps to get out

Currently, many households are struggling to raise the funds needed to meet their daily needs. One of the main reasons is the fact that they are covered with debt. Most of them have to repay bank credits. These situations force them to put money aside every month. This section is reserved for these people. She will present the steps to follow to get out of an overindebtedness.

Start by filing an application with the commission in charge of over-indebtedness

Are you planning to recover and get out of your debt ? The first step that you must take is the filing of a file with the commission which is in charge of overindebtedness. In this document, you will explain your case and are you at the level of your assets or liabilities. This approach will allow you to be registered in the FICP or National File of Incidents of reimbursement of Credits to Individuals. Your file will be studied and the commission will judge whether it is admissible or not.

The duration of the study of the file is 3 months. If your request is rejected by the commission, you will hardly be able to benefit from a treatment allowing you to get out of overindebtedness. On the other hand, if it is accepted, together with the commission, you will seek a compromise to correct your situation.

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What happens once the request is accepted?

The commission will inform all credit institutions that you have started a procedure to deal with your overindebtedness. Your creditors must immediately suspend their lawsuits. They must also file receipts for their claims in a period of 30 days.

Development of a recovery plan

The commission will draw up a conventional recovery plan. The latter will be proposed to you and your creditors. It’s an amicable plan to help you resolve your situation. However, both parties must sign their names.

Within this recovery plan will be all measures designed to reschedule or postpone payments of arrears. It could also offer the sale of some real estate like houses. Finally, the recovery plan may contain statements stipulating the cancellation or cancellation of interest rates.

The recovery plan is valid for 8 years, even if it has to undergo a revision procedure. During these 8 years, creditors must stop all suits against debtors. An exception may be made if the latter do not follow all the points stipulated in the recovery plan.

Under the terms of the recovery plan, the creditors will no longer be able to sue the debtor for debts that were partially canceled.

What could result from the over-indebtedness plan?

Generally, at the end of this procedure, the debtor is no longer obliged to subscribe to a credit. In fact, when you apply for credit, you always check if the client is not in the FICP . To provide for her most vital needs, the commission gives her a source of income. Vital or capital needs are food, clothing, rent, and so on. However, the debtor must respect the payment of the creditors according to the agreements agreed and written in the recovery plan.

What happens if the board refuses or rejects the application?

Often the board rejects the debtor’s claim. Many are the reasons. One of them is the fact that the creditor and the client did not reach an agreement. In this case, the debtor can make a request for measures to correct his situation with the commission. Admittedly, the debtor will not be able to escape his debts, however he will benefit from a modification of the mode of payment.

To conclude, it is quite possible to get out of overindebtedness. All you have to do is file an application with the commission that deals with the conventional recovery plan. However, it is imperative to follow their instructions to the letter.

 

 

 

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