A credit helps to overcome a financial bottleneck and so wishes can be fulfilled more quickly. If repayment works smoothly in monthly installments, a loan is a nice thing. But such a loan can also have unforeseen consequences.
The loan can no longer be repaid
A lot can happen during the life of a loan, and unpredictable events can make a loan impossible to repay. In most cases, the reasons are unemployment, illness or divorce. But what happens when this happens.
First, the creditors will try to clarify the matter. If the debtor is unwilling or economically unable to pay his bills, the creditor will issue a reminder. If this does not lead to success, the creditor can issue a warning against the debtor. If there is no agreement and no payment is made, the enforcement notice is sent after two weeks. If the invoice is still not settled, the bailiff is charged with the attachment. If the debtor indicates that he is penniless and no valuable items can be attached in the home of the person concerned, the bailiff informs the creditor that the attachment has been unsuccessful. In order to get an idea of the debtor’s financial situation, the creditor will file an application for the debtor’s affidavit with the court. For the debtor, this means the economic and financial end. With an affidavit, he has to swear an oath instead of his financial circumstances. This affidavit must be completed with the bailiff. If the debtor provides false information, it is punishable.
Many debtors understandably want to bypass this affidavit because the address of the employer is also required so that the debtor can collect the attachable part of the salary or wages. For some, that means losing their jobs. If the debtor does not appear at the bailiff’s appointment, the creditor can in turn apply for an arrest warrant to take the affidavit. This is a compulsory measure and is valid until the debtor has given the affidavit.
Credit despite warrant
This arrest warrant is reported to the credit bureau because it is a civil arrest warrant. Mistakes in criminal cases are not reported. This is the worst credit entry there is. If the debtor wants to apply for a new loan despite a warrant, the banks generally refuse.
If the claim has been settled, the creditor must inform the debtor in writing. In order for the arrest warrant to be deleted from the credit, the debtor must provide this to the district court, whereupon the arrest warrant is immediately deleted from the debtor register. The same procedure applies to credit, where the debtor must also prove to credit that the debt has been paid or that the affidavit has been made. credit is obliged to delete the arrest warrant immediately. However, the affidavit remains.
There is no need to apply for a loan despite a warrant. In such a case, no bank, not even a foreign one, will approve a loan despite a warrant.