Category: Lenders

Debt collection in your accounting program

Most self-employed people have experienced that a customer does not pay the bill. In Dinero you can send the bill to your customer directly to debt collection. Then we stand for the rest.

Send your customer to Debt collection with one click

Before you can forward your bill to debt collection, you must have sent two reminders to your customer (for details see more at the bottom of the page). 10 days after reminder 2 is sent, a debt collection button will appear at your bill in Dinero. Here you just click on the button, and your bill will be forwarded to our debt collection partner. It’s that easy!

No cure – no pay!

You can forward your bill to debt collection for free. Once sent, you will receive an email from the collection company, Collectia, and they will take care of your case and the communication with you thereafter. They will do the necessary work to get your money, and when that happens you will return your entire principal + your own imposed reminder fees to your Danish customers. Collectia lives on the fees, interest and collection costs imposed on your customer. In other words, it means that it’s completely FREE for you at your Danish customers.

For foreign customers, Collectia works with a commission that is distributed among 70/30. Ie 70% of the principal goes to you and 30% of the principal goes to them. In addition, Collectia charges a transfer fee of DKK 250 + the destination’s separate price list.

If the money cannot be obtained for various reasons (the customer’s business has gone bankrupt or the like), you must not pay a penny for the work with the withdrawal of the money – unless you choose to proceed with the case. Read more about the course of the case here if you choose to proceed with the claim.

Remember: You must have Dinero Pro in order to use the collection function. If you are Dinero Starter, you can upgrade below:

How long do I have to go before I can send the bill to debt collection?

In Dinero, you must send two reminders to your bill before you can initiate a collection case. You can send your first reminder immediately after the due date is exceeded. Then you have to go 10 days before you can send the 2nd reminder. If reminder no. 2 is also exceeded, you can then send it to debt collection.

Can you get a mortgage with student debt?

Can you get a mortgage with student debt?

Many worried parents and (former) students wonder if it is possible to buy a house while you still have a hefty study debt at DUO. To give a short answer: yes, you can! So the one who is sitting in the metamorphosis from student to working can breathe quietly. However, with mortgages in general, the higher the debt, the harder it is to get a mortgage. Except if you have a high income, but most starters earn modally.

It also depends on whether you started your study or after July 2015. The ones that started after the summer of 2015 have to borrow everything and do not receive student finance. Those who did receive student grants often have a lower debt.

Mortgage: how about that again?

Before you can take out a mortgage, you have to meet numerous conditions, and that is quite logical in itself. You borrow a lot of money from the bank that you pay back later. There are also a lot of legal rules for banks, just to ensure that you do not get caught up in financial penalties. If you want to buy a house, in addition to financial obligations such as the student loan, two other main issues are looked at: housing value and income.

Value of your intended home

One of the first things that is checked to see if you are eligible for a mortgage is the current market value of your intended home. This amount is determined by an independent expert, so you can safely assume that it is correct. If you still want to build a lot or if repair or installation work is required, this can affect your mortgage. The law stipulates that it is not possible for you to have more than an agreed percentage of the home value as a mortgage. After many successive reductions by the government, it is now so clear that you can borrow up to the entire market value of the house, 100%. The only possibility to borrow more is when you make the new house energy-efficient, but you need an income of € 33,000 per year for that. Moreover, it is also questionable whether you want to realize that right away with your first owner-occupied home.

Income

The bank simply wants to know if you are able to pay the mortgage in the coming years. Logically, your income and expenses and loans are looked at. The bank partly determines for you what you can spend on mortgage costs. If you earn a lot you have to pay more mortgage, but also more student debt and if you earn less less the other way around. People with a permanent contract obviously have a good basis to get a mortgage for a house that matches their income, also with a student debt! However, there is also a downside: if your student debt is sky-high and you do not have such a high income, it becomes more difficult.

Mortgage with a study debt

In order to determine whether you will receive a mortgage, the market value of your intended home will first be considered, then your income and then your (study) debts. It works simple: the more study debt you have, the less money remains to pay off your mortgage. The amount of your student debt depends, of course, on how long you have studied and how much you have borrowed from ‘ome’ DUO. People who fell under the old system and therefore received a scholarship are usually less likely to pay a higher debt than students who started their studies after September 2015. This generation only receives an allowance if both parents have a low income. Otherwise everything has to be borrowed. The advantage for them is that they can do 30 years to pay off their debt. The ‘old generation’ can do that for up to 15 years.

Old system

With the old system, before July 2015, you will pay 0.75% per month of your entire study debt at DUO. When looking at a mortgage application, they do not see what you have already paid off, but just how many percent of the total you pay each month to repay the loan. So if you have a study debt of € 20,000 you pay € 150, – per month to DUO. Have you already paid € 10,000? Bad luck, they still look at your original student debt and your monthly repayments. The amount of in this case € 150, – you get less per month mortgage. This falls under debts and the bank calculates when applying for your mortgage. If you want to easily calculate your maximum mortgage with a student debt, you can do it here .

New system

With the new system, after July 2015, it is true that you pay 0.45% of your student debt per month at DUO. This is lower than the old system, because you can not pay 15, but 30 years on the repayment. Purely because this generation does not receive a scholarship and therefore needs to borrow more. If you have accumulated a student debt of € 40,000 at the end of the trip, you must transfer € 180 per month to DUO. When applying for a mortgage, you logically receive € 180 less per month in mortgage. Calculate your maximum mortgage here .

Discourage study debt?

Some people with a study debt consider ignoring the mortgage application, so they can buy a nice house faster with a higher mortgage. A study debt at DUO is not seen as a standard debt such as paying off a boat or car for example. In fact, your student loan at DUO is not reported to your mortgage advisor. You can imagine that it is very tempting not to say that you have a student debt. However, we recommend to tell it at all times. Lying about a student debt can have unpleasant consequences. One of them is the exclusion of mortgage guarantee. This safety net ensures that your mortgage is paid by the bank in times of need, such as unemployment. Hiding your study debt therefore involves big risks.

First redeem then mortgage

Because there is hardly any interest on a student debt, the quick repayment is not exactly tempting. Especially not if you occasionally want to go on holiday or want to buy a private car. The disadvantage of this is that if you want to buy a house and want to take out a mortgage, only the original amount you have borrowed will be looked at. Even if you only have to pay off for a year, your entire mortgage is the victim of it. That is why first paying off your student debt before you buy a house is very attractive. But, with the new system where much more has to be borrowed to make ends meet, that is almost impossible. Make at least a good planning how much you want to pay off per month.

Conclusion

The much-heard myth that you can not buy a house with a study debt is not true. You can just get a mortgage with a student debt, but much less than if you did not have a student debt. It also depends on the level of your income and whether you fall under the old or new system. Through this handy calculation tool you can see exactly what your maximum mortgage with student debt is. Some people are considering leaving aside their study debt in order to get a higher mortgage. This can have nasty financial consequences. Finally, it is by far the most convenient when you first pay off your debt before you buy a house. But with the new loan system, this is going to be a difficult job. A mortgage with a student debt is therefore possible, but not ideal.

Home earning

How much money do you get when you are in debt restructuring?

Debt restructuring is a law for people who are no longer able to meet their fixed costs or payment obligations. How much money you get when you are in debt restructuring depends on the amount of your debts, income and fixed costs. In this article we like to explain how that is.

If you are in debt repayment you have to use almost everything you earn to pay off your debts. You get an average of € 50 per week to get by, this is also called ‘living money’. As the route is almost over, this amount can increase to € 80. If you have a family you get more money than if you are single.

Before you claim the Personal Debt Rehabilitation Act (WSNP), your financial problems are first analyzed by the Social Services or Credit Bank. They decide whether the debts can also be repaid in another way – such as a payment plan.

What is the debt restructuring?

The court determines whether you are eligible for debt restructuring. If that is indeed the case, you enter the debt remediation program. This process takes about 3 to 5 years. Together with the judge and an administrator a monthly repayment amount is agreed. Then you are obliged to generate as much income as possible to meet your creditors. In addition, you may not incur any costs that do not relate to your daily living expenses. New debts are completely out of the question. Did you go through the process well? Then you will receive a ‘clean slate’ from the court and you will be debt-free. This means that creditors can no longer appeal.

What is the Debt Rehabilitation Natural Persons Act (WSNP)?

The abovementioned debt rescheduling scheme has been formally laid down in the Debt Rehabilitation Natural Persons Act (WSNP). This law was adopted in the Netherlands in 1998 to give residents an extra chance of a life without debt. If a person has stopped paying his or her debts, the judge can pronounce a ‘bankruptcy’ about someone. Without the WSNP, someone will walk around indebted for life. The WSNP is trying to find an interim solution for this.

How much money do you get when you are in debt restructuring?

In fact, you will not receive any money if you are in debt repayment. You get a postponement of payment, as it were, and there is a chance that part of the debts will be canceled. So with a bit of luck you do not have to pay off part of your debts – provided you go through the process. How high this amount is depends entirely on what agreements have been made with the court and the administrator. And of course how high your debts are.

Allowable amount

If you are in debt repayment, you are entitled to a free amount. You may spend this amount at your own discretion on fixed costs such as rent, groceries, et cetera. A small part is also reserved for other expenses. Everything you earn above this amount goes directly to the bankruptcy account of the administrator. He or she will ensure that this amount reaches the creditors.

The amount of the amount to be released, also known as living money, will differ per individual. For example, it differs quite a bit whether you are single or that you have a family. To easily calculate how high your free amount is, Bureau WSNP has developed a calculator. You can find this calculator here. You can assume that the amount is very low and that you can only purchase the necessary ones.

How did you get out of debt repayment?

If you are struggling financially, you want to get out of debt repayment as quickly as possible. This means that you can continue with a clean slate, in other words, debt-free. There are two ways to get out of debt restructuring:

Successfully going through the debt restructuring

A debt repayment path lasts an average of 5 years. During the 3 to 5 years you have to live according to the agreements made with the court and with the administrator. The administrator checks whether your behavior is good. Did you keep to the agreements during the term of the debt rescheduling process and demonstrated good financial behavior? Then remnant debts are waived.

Early repayment

Do you want to get out of the debt restructuring faster? The only solution is to repay more. The more you redeem, the sooner your debts are resolved and the sooner the process is over. Do you still have a piggy bank somewhere? Or money in an old sock? Use every dime to pay off your debt. You can also apply for a better job. The higher your income, the more you can redeem and the sooner you are out of debt.

Your difficult financial situation can work to your disadvantage when applying for a job. You can also choose to start your own business. Without starting capital this is difficult, but this article shows that there are enough possibilities. Unfortunately, you have to pay the profits from your own company as long as you are still in debt repayment, but your profit may be so high that you can pay off your debts early. Moreover, you immediately have a new source of income for the future.

When are you entitled to the debt restructuring?

Only a judge can make this binding decision. There are, however, a number of public guidelines, which we will briefly explain below:

  • The person is no longer able to pay off debts
  • The debts arose in good faith. This is a legal concept that judges whether something has happened to the good intentions.
  • The person is willing and able to meet the financial obligations of the debt rescheduling process.

When are you less likely to claim debt restructuring?

In some cases it is unfortunately not possible to go into debt repayment. Debt restructuring is likely to be rejected in the following situations:

  • The debts did not arise in good faith. For example: fines from the CJIB, over-spending (for example an extra loan or purchase addiction), debts from addictions (eg drinks or gambling).
  • The person is already in the debt repayment or has already been in debt repayment in 10 years prior to the request.
  • The debts arise from a sanction of a crime that took place within five years before the request.
  • No amicable process has taken place. An amicable trajectory is a legal term, which means that an organization has made an offer to the creditors, taking into account your income. If the creditors do not agree with this, then the debts have not yet been canceled and you will benefit from the debt rescheduling process.

The court assesses each situation individually. It is, of course, possible that there are certain circumstances that are inextricably linked to your financial situation. That is why you have to communicate everything honestly and openly, so that the court can determine whether you can get an exception.

Home earning

Late Payment – How Creditors and Debtors Respond at Best

 

A late payment can occur quickly and unnoticed. The classic example is when you have ordered something and forget to pay the bill. Sometimes the payment can not be made because the money is missing. An unexpectedly high expenditure, unemployment or a longer illness leads to a decrease of the income. It will be difficult to settle all open items. A default with reminder is the result. In the case law, the default in payment is defined in the Civil Code under §§ 280 and 286 ff . In the legal sense, there is a default of payment if the invoice was not settled on the due date . The due dates are specified in the invoice.

Late payments lazy placeholder– The introduction of the first steps

When is a late payment?

This question many debtors who hold an invoice in hand and pay the reminder fees. From a legal point of view, different reactions to a late payment are distinguished. If a service has been used or a good has been purchased, billing will usually take place within a period of two weeks. If the invoice is paid within this period, the due date is deemed to have been completed. The debtor has, according to the law, however, another two weeks to the

Settle the bill. A reminder for late payment can only be made after the expiration of four weeks. The default then occurs automatically.

Recurring payments

The situation is different with regular recurring payments. These are provided, among other things, for payments of incidental costs or ongoing mixing costs to energy suppliers . If the payment is not made on the due date, the delay in payment occurs immediately. The company can immediately send a reminder without waiting four weeks. For loans differing provisions apply. Call-off loans may be terminated immediately if an agreed installment has not been received. Installment credits may be demanded. Termination is only possible if at least two consecutive installments have not been paid and the arrears exceed an individual percentage. The percentage depends on the amount of the loan.

The dispatch of reminders

Voluntary dispatch of reminders

The assumption that the creditor must send three reminders before he can take further action is legally inconsistent. The despatches are sent on a voluntary basis . Many creditors send the first reminder free of charge. The second and third reminder will be charged a reminder fee. The creditor does not have to send reminders if he already points out in the invoice the legal consequences of non-payment. In this case, after four weeks have expired, he can initiate enforcement measures without having sent a reminder.

Reaction in case of late payment

How to respond to a warning?

If a reminder has been written and interest has been claimed for the late payment, the debtor should react immediately. With the transfer of the amount including reminder fees the claim is done. If the sum can not be settled in an amount due to financial difficulties, it is important to contact the creditor. Often it is possible to arrange a installment . These agreements may incur additional costs in some cases.

Legal consequences

What legal consequences does a late payment have?

If the delay in payment continues, the creditor can withdraw from the contract or claim damages . The procedure is presented in the terms and conditions. First, the creditor will try to get the money from the debtor. If reminders do not bring success, a judicial reminder procedure can be sought. Upon withdrawal from the contract, the creditor has the right to claim damages for the lost revenue. In addition, the debtor must bear the costs of the dunning procedure.

The court order

Conduct when issuing a court order

The granting of a judicial order for dunning takes place without the examination of a court , whether the costs were actually incurred. If the debtor receives such a dunning notice, he should first check whether he is really in default. If so, contradiction makes no sense. Usually the creditor will try a procedure. If the creditor is right, the debtor must bear the entire costs of the proceedings.

The enforcement order

If the debtor does not file an objection, the creditor applies for an enforcement order . The amount can then be recovered from the debtor over a period of 30 years. An objection may be filed against the writ of execution. This is useful if the decision was wrongly issued. In this case, there is a chance to win the lawsuit.

Cost of the dunning procedure

How expensive is a dunning procedure?

If the order for payment becomes final, the debtor must bear the costs of the order for payment procedure. This includes:

  • Sum of the principal debts
  • Interest rates (5 percent above the base rate, which is based on key interest rates)
  • Costs for the reminder
  • Costs for the work of a lawyer or collection agency
  • Expenses proven by the creditor (postage, telephone calls, determination of address etc.)

 

The costs must be listed in such a way that they are traceable to the debtor. If it comes to a lawsuit, the debtor must pay additionally the court costs and the opposing lawyer . The total amount may amount to a multiple of the actual debt after such a procedure.

Late payment by creditors of different legal forms

A late payment can have different consequences. If an invoice is not paid, the debtor bears the financial consequences. Worse are the consequences if rent or health insurance is not paid. If the salary payment fails because the employer is unable to pay, this often has serious consequences for the employee.

Late payment at the landlord

The payment term of the rent payment is according to the legal regulations on the tenth of the respective calendar month. If the tenant has not made the payment on this date, there is a default in payment. The landlord charges the costs in the form of default interest . Only with the second missing payment is it possible for the landlord to terminate the living space. If this happens once and the tenant is looking for a conversation with his landlord, in most cases no notice is given. The termination can be averted by full payment of the rent for a period of time. An eviction notice is possible if the renter refuses to accept the termination.

Late payment in private health insurance

Members of private health insurance and private supplementary insurance actively pay their contributions to the insurer. If the payment is not made on time, this will initially lead to a suspension of the contract. This means that the insurance coverage expires. This occurs when the insured is in arrears with two consecutive bonuses.

Important to know:
If benefits are received in the sense of the German Social Code, it is not permissible to suspend the insurance contract. In this case, the state will pay for the contributions or a change to the statutory health insurance is considered.

Late payment by the employer

A late payment by the employer is often a serious cut in the employee’s personal budget. Important bills can not be paid and there is a delay in payment. The employee has a statutory right to the payment, which he can enforce in court. If this is unsuccessful because the employer is not solvent, the claims fall under the bankruptcy estate and are never serviced at worst. The employee can do nothing but bridge the time after the termination or the trial with savings, help from friends or family or with a loan.

Borrowing in case of late payment

The inclusion of a short-term loan can help to catch a temporary default. If the creditworthiness is sufficient, it is advisable to reschedule the outstanding amounts in a loan. The outstanding claims are bundled and can be paid in regular installments.

 

Procedure for the settlement of the over-indebtedness crisis for the general partner of a limited partnership

 

I am a limited partner (50%) of a small Sas: in agreement with my partner, after 13 years, we decided to close the business (clothing store) because the volume of business had progressively reduced and consequently also to close the company too. The company has contracted certain debts over time, including a mortgage loan, an unsecured loan and a current account overdraft. As well as being in arrears of three years with the payment of INPS contributions of the general partner. All the debts contracted with the banks have been guaranteed by me with personal surety, having a salary as a private employee. The general partner instead guaranteed the loan with a house he owned. There are no and there have never been unpaid installments with the banks and even the suppliers have credits. In this context of guarantees given by the shareholders, can the company, for only unsecured and contributory debts, ask for a plan to write off debts with the consequent payment of the same? The general partner, who is currently unemployed, also owns another house, in addition to that burdened by a mortgage and I own 50% of the house in which I live.

 

The shareholders’ liability in limited partnerships is governed by article 2313 of the civil code: in the limited partnership the general partners are jointly and severally liable for the social obligations, and the limited partners are limited to the amount granted to the creditors of the company dissatisfied with the challenge of the general partners.

So, just to frame the question correctly, we should talk about the application of Law 3/2012 – the composition of the crisis by over-indebtedness – for the general partner and not for the company (which is not autonomous as far as liability is concerned).

The law in question is applicable to the non-fallible partner, if there is a situation of persistent imbalance between the obligations assumed by the debtor and the assets readily liquidated to deal with them, which determines the significant difficulty in fulfilling their obligations, or the definitive incapacity to fulfill them regularly. And it is however necessary the consent of creditors who hold at least 60% of the debt guaranteed by a mortgage. The mortgage creditors, in fact, must be fully satisfied in a possible agreement to restructure the debt and debit the residual.

In other words, for the general partner, the sum of the mortgage loan, the unsecured loan, overdrafts and unpaid contributions must be far greater than the liquidation value of the two houses owned.

For what concerns, however, the situation of the limited partner who has signed personal guarantees in favor of the company’s creditors, and that for now has no certain debts (but only possibly future), the problem will arise when corporate creditors they will make claims against him, if only after having vainly excused the principal debtor (ie the general partner) if the guarantee contract provides for the clause of the benefit of enforcement. Unfortunately, there is no way to get rid of the guarantees given and for which the secured creditor has not yet requested coverage of the “buffs” left by the principal debtor. Not even with the 3/2012 law.

November 3, 2018 · Giorgio Martini

 

Joint vehicle with administrative detention – How should the co-owner behave who has no debts?

 

A vehicle placed under administrative detention owned by two persons may be subject to administrative detention even if the debtor in respect of the tax authorities is only one of the owners. If so, how should the co-owner who has no debts behave?

The non-debtor joint accountant must patiently bear the consequences arising from the administrative detention order placed on the vehicle due to the defaults of the debtor joint account, or he may take over the share of the joint account holder from the debtor joint account, he may transfer his share to the debtor the debtor’s joint account holder for the compensation of any damages suffered (to be proven), or, even more simply, to pay the amount due to the PA from the debtor co-owner to free the vehicle from the administrative constraint.

Insights and additions from the blog

The professional debtor and the debtor entrepreneur have the right to request and obtain the cancellation of the notice of administrative arrest or the cancellation of the administrative arrest transcribed on the vehicle instrumental to the professional and entrepreneurial activity carried out
As we all know, the 60-day deadline for the payment or the appeal of the tax collection has expired in vain, the tax collector may order the administrative arrest of the debtor’s vehicle. This is what Article 86 of Presidential Decree 602/1973 provides. The procedure for registration of the administrative detention of the vehicle owned by the debtor is initiated by the collection agent with the notification of a prior communication containing the notice that, in the absence of payment of the sums due within the period of thirty days, the firm, without the need for further communication, by registration of the provision that places it in the Public Automotive Registry …

The disabled debtor has the right to request and obtain the cancellation of the notice or the cancellation of the administrative detention already arranged on the vehicle used for its transport
Revenue collection agency, starting from February 12, 2018, has decided to expand the audience of vehicles for which the detention can not be arranged. In addition to those instrumental to business or profession activity, vehicles used to transport disabled people can not be subjected to the administrative arrest procedure. To benefit from the cancellation benefit of the administrative arrest notice or the cancellation of the administrative arrest already registered to the Public Automotive Registry (PRA), the debtor with disability must sign a substitutive declaration of certification stating that the vehicle subject to notice …

Selling a vehicle on which a person is responsible for administrative detention must be sold to a citizen residing abroad
The law that regulates the institution of the administrative arrest prevents circulation, radiation for demolition and for definitive export, but not sale. Naturally the detention remains with the sale and the buyer has the same limitations: he can not circulate and can not make the radiation to the PRA. Unfortunately, our legislator has thought well to confuse the administrative arrest for tax debts with the accessory of other sanctions of the Security Council, which is a real seizure, even if normally in custody of the owner. Hence much of the confusion engendered in everyone and also in the PRA, which provided for a …

Administrative stop on the vehicle owned by the debtor – If already registered you can obtain the suspension of the provision by requesting the debt payment and paying the first installment
Once the request for payment has been received, Equitalia can register a mortgage on the property owned by the debtor or arrange the administrative detention on his vehicle, only in the case of non-acceptance of the request, or forfeiture of the benefit of the rateation that occurs if they do not pay 5 even non-consecutive installments. However, the text of paragraph 1 quater, Article 19 of Presidential Decree 602/73 (introduced by Legislative Decree 159/15 and in force since October 22, 2015) continues without prejudice to the detentions and mortgages already registered at the grant date of the rateation. In practice, if the administrative arrest on the debtor’s vehicle …

Administrative stop and sale of the vehicle
Those who purchase a car subject to administrative arrest do not in any way accept the debts that led to the application of the precautionary measure. It is always the old owner, who has sold his car, to have to fulfill his tax duties. Before buying a car, the buyer must check the property certificate issued by Pra to verify that the vehicle is not burdened by an administrative detention. If it were, the new owner can not circulate with the vehicle and can suffer the consequences of a possible foreclosure. Until the debt is paid or canceled, for example with …

Discussion points from the forum

Difference between fiscal detention and administrative detention – The car tax (car tax) is payable for vehicle subject to tax relief
The Constitutional Court has specified, in the 47/2017 ruling, that the car tax is due even if the vehicle is subject to administrative detention. Since the ruling of 2017 I wondered if it has retroactive effect, as I received a payment request for 2015 (within the limitation period of 3 years).

What happens if you circulate with an administrative vehicle and are stopped for a check?
In the case in which you circulate with a vehicle subjected to administrative detention and be stopped by the authorities, an administrative sanction is raised from about 700 to about 3000 euros, and the attachment of the vehicle is also foreseen. Could anyone explain exactly how this foreclosure works? Is the vehicle custody left to the owner or not? How much time passes before the vehicle is submitted to foreclosure after the verification of violation of the administrative arrest? In the event of a foreclosure, is it still possible to settle the debt by paying it in installments? And if so, the payment of the first installment interrupts the procedure of …

Prescription of an Equitalia folder originated from fines and taxes whose non-payment resulted in registration of administrative arrest on the vehicle owned by the debtor
In 2010 they were subjected to an administrative stop in the vehicle, after which there were no more notifications for the payment of the folders. Now I wonder, given that for some of these, such as fines, the requirement is 5 years, now I can self-help ask for the cancellation of the debt by prescription?

Is it possible to sell vehicles on which the administrative detention has been ordered abroad?
A vehicle subject to administrative detention may be freely sold, informing the buyer of the presence of the detention. If the buyer was a foreign natural or legal person, the vehicle could still be sold, with the only problem of not being able to carry out the radiation for definitive export to the PRA, but being able to register the sale to the new owner. This sale could also be formalized in the municipality, thus providing for registration to the PRA. If this operation was “forgotten”? In any case, from the moment of sale, with authenticated signatures in the municipality, the seller would cease to have responsibility on the vehicle. In case the vehicle was sold …

Administrative detention and application for ratation denied – What happens now?
I was subjected to an administrative arrest on a vehicle belonging to me, the request for payment of what was requested by Equitalia was rejected. Not being able to pay in a single tranche what required by Equitalia I will be obliged to undergo the arrest avoiding to move with that vehicle. My doubt is this: in the event of non-payment, Equitalia limits itself to the confiscation of that specific vehicle on which the detention has been made, or it can translate the restriction also on other goods (for example another cheap car to buy specifically to move in place of the one subjected to …

Denmark’s public debt

 

Denmark’s public debt falls

The entire EU public debt is steadily falling. Denmark’s finances in particular are improving, which is also reflected in the Danish municipalities. This shows new figures from Statistics Denmark.

The statistics show, among other things, that there are marked differences in the EMU debt of the various euro area countries. Estonia is at the top with only 9.5% of GDP debt, while Greece is the country with the largest public debt of 179% of GDP.

EMU debt includes a consolidated statement of significant debt items in government, municipalities and regions. In other words, the country’s public debt.

Public debt of EU countries

The EU countries have a total average debt of 83.5% of GDP, which has been declining since 2014 by about 3 percentage points after several years of increase.

Denmark has one of the absolute lowest rates in Europe in terms of EMU debt. The debt is 37.7% of GDP, equivalent to DKK 779bn. This makes Denmark a model example compared to crisis-hit countries like Portugal, which have a debt of 130.4% of GDP, Italy with a debt of 132.6% GDP and Greece, whose EMU debt is 179% of GDP .

Denmark is thus in sixth place in relation to the lowest debt in Europe and is thus surpassed only by Estonia, Luxembourg, Bulgaria, the Czech Republic and Romania. All the above countries, Denmark included, are thus within the 60% criterion, which is stated in the Stability and Growth Pact.

The EU’s 60% criterion

According to the Stability and Growth Pact, the normal gross debt limit is 60% of GDP in normal circumstances. This means that a country must have a maximum debt of 60% of its total GDP. There are only 12 euro countries that meet this requirement. These countries are marked in green in the map.

Other 60% compliance criteria are Malta, Poland, Slovakia, Sweden, Lithuania, Latvia, Romania, Czech Republic, Bulgaria, Luxembourg and Estonia.

EMU debt graph

Estonia as a pattern example

Estonia is the euro country that performs best at present. With an EMU debt of 9.5% of their GDP, Estonia is the eurozone with the least public debt. They thus remain well below the EU’s 60% criterion. This point, however, is not the only point where Estonia is shining – in many other respects, the country is the EU cloth.

In addition to the above, Estonia also fulfills another important criterion on the annual government deficit. The annual government deficit should not exceed -3% of the country’s total GDP. The deficit for Estonia was in 2016 at 0.3% of GDP, when compared to -0.9% in Denmark. Only two countries failed to meet the above criterion. Spain, respectively, with -4.5% and France with -3.4%.

Government deficit

The fact that Estonia does so well may be due to a number of factors. One of the reasons for this is that the country has a much smaller economy than, for example, Denmark. With a total GDP of 23.14 billion. USD, the GDP of Estonia is 13 times less than that of Denmark, which is DKK 306.1 billion. dollars.

Looking at the country’s public revenue and expenditure, it is clear that Estonia has more expenses than revenue. One could wonder about the low EMU debt, but since this is a gross debt concept, only the liabilities are taken into account. Thus, the difference between assets and liabilities is not measured. Therefore, only expenses such as debt obligations and not investments are included, which can be part of the explanation for Estonia’s low debt.

If you highlight Denmark’s net debt, you also get a completely different picture than the EMU debt. Denmark’s net debt represented 6.5% of total GDP in 2016. This is a marked difference to the aforementioned 37.7% EMU debt. This is because the assets are not included in the EMU debt, which means that Denmark’s deposits with Danmarks Nationalbank are not included.

Now we have looked at how the economic situation looks at EU level, but how does the financial landscape in Denmark look? We get answers to this in the map below, which shows the long-term debt of the Danish municipalities per inhabitant.

 

Map of municipal debt

Each year, all municipalities are allocated an amount from the Ministry of the Interior, which is budgeted for fixed costs and financing of projects. If this amount is not enough, the municipalities have the opportunity to borrow.

The municipalities’ loan options are also regulated by the Ministry of the Interior. They make sure that the municipalities cannot borrow for anything. For example, they cannot borrow for the construction of new buildings, but may like to borrow for energy improvements.

The result of the above is a long-term debt that the municipalities must repay. Denmark has a total of 5 regions with a total of 98 municipalities, which in 2016 had an average long-term debt of DKK 14,898 per. inhabitant.

How do the accounts look out in Denmark’s municipalities?

On the above map, the various municipalities’ debt is visualized. The municipalities marked with red symbolize the municipalities that have a debt above average, whereas the green ones illustrate the municipalities with a debt under the amount.

In 2016, Tårnby was the municipality with the lowest debt of only DKK 9 per share. inhabitants, whereas Samsø municipality had the highest debt of DKK 124,302 per inhabitant. There is a marked jump to the second highest debt, which is made up of Furesø municipality, which has a debt of DKK 66,362 per. inhabitant.

As seen in the above example, the debt fluctuates greatly among the municipalities. Mostly, however, most municipal debt lies between DKK 10,000 and DKK 20,000 per capita. inhabitant.

The size of the long-term debt and development is something that is well-kept in the Ministry of Finance, as this helps to ensure a healthy municipal economy. The overall goal is not to be debt-free, as it is necessary for the municipalities to invest in order to ensure future development. The municipalities, on the other hand, have the goal of reducing the debt and, at the same time, giving room for the possibility of development in the municipality.

 

Emigration despite debt: flight abroad is not a solution

According to statistics, one in ten Germans is considered highly indebted and in the long term is unable to repay the debts. Some people think in this situation, emigration or a fresh start abroad. But moving abroad is rarely a solution, and emigration without financial resources is almost always doomed to failure. In addition, the debtor must consider the numerous legal consequences. What pitfalls lurk, I explain in the following:

May one emigrate at all?

Even with debts one may emigrate, everyone may freely determine his place of residence. But the debt also remains abroad and can be driven there, depending on the country. For example, within the EU there is a European Enforcement Order , which is automatically recognized by the other member states. So, if you move to another EU country, you automatically take along your debts. The debts are then possibly collected by a local collection agency.

Cutting off is not a solution either!

Some debtors also think of escape: So a move abroad, without telling the creditors of the new place of residence. This is morally questionable. However, one does not have to declare the new place of residence in Germany when deregistering in Germany. Logically, it is then difficult for the creditor to execute a foreclosure and is worthwhile only at high sums. Debt collection agencies also have opportunities to track down people abroad (eg via registration and voter register, web search, etc …).

What happens to the debt?

But even if you submerge and go undetected, through the flight the debt mountain does not disappear in Germany. The creditor can obtain a debt in court in this case and the claim becomes statute-barred in Germany after 30 years!

Diverse consequences on return

If the debtor eventually returns to Germany, he faces an even bigger mountain of debt. Incidentally, a return to Germany is not as unrealistic among emigrants as many think. Many emigrants fail and are forced to return to Germany someday. As a result of the interest and surcharges, the debts continued to rise during the absence; if necessary, the creditor filed a criminal complaint for fraud. Even an arrest warrant may even wait because the debtor has failed to file the affidavit (formerly the ” oath of disclosure”). The negative Schufa entry also makes it difficult to rent an apartment. Even opening a checking account or signing up for a mobile phone contract can be a problem. Escape is therefore no solution, better one decides for the honest variant “pay off debts”.

When emigration is still conceivable?

Germany is doing quite well economically, at least in comparison to many other (South) European countries. But not all people profit from it, since above all fixed-term employment, temporary employment and low-paid mini-jobs are booming. Even for career starters with a university degree, it is not easy to reduce the high Bafögschulden when one shifts from one long-term internship to the next.

In some neighboring countries, such as Switzerland or the Scandinavian countries, such precarious jobs are far less widespread than here. Whoever sits in the debt trap and this country sees little job prospects, can also be a “better paying job” in one of those neighboring countries, of course, apply . Higher wage levels , job security and lower taxes at the same time can help to clear the debt mountain faster. It is well known that there is freedom of movement in the EU, so visa applications are unnecessary and relocation may not be more expensive, as in Germany. Of course, such an emigration makes sense only with a concrete job offer and a signed employment contract, as jobseekers may not receive social assistance and the cost of living in these countries is much higher than in Germany, so that you can only slip deeper into the debt trap without a job.

USA, Australia, Canada: long-haul destinations are mostly unsuitable

Outside the EU / Europe, visa requirements are much stricter. For a work visa you often have to prove a special qualification (eg graduation, completed vocational training), need a concrete job offer or must have language skills and financial means etc …. The way to the visa is correspondingly lengthy and expensive. As a result, traditional emigration countries such as Australia , Canada , New Zealand, or the US are generally unsuitable for borrowers despite potentially attractive job opportunities.

There are also visa barriers in exotic third world countries. In addition, the job perspectives are usually so bad that emigrants need reserves or only have prospects as self-employed. And without money, life there is a lot harder because there is no social network like in Germany.

Conclusion

Emigration does not mean that you suddenly lose your debts. Even those who live and work abroad have to pay off their local loans. One should therefore exhaust all possibilities in advance (debtor advice, agree with creditors installment plans, rescheduling * to personal bankruptcy **.) And first try to become debt-free in this country.

Debt counseling: Since many debtors have lost track of their own financial situation, going to debt counseling makes sense. This first creates a list of the actual financial situation including all debts. Debt counseling with the debtor then discusses ways to pay off the debts. Debt counseling also negotiates with creditors. In the best case, a payment plan can be arranged. If this is not possible, private insolvency is initiated in the worst case scenario.

* Debt rescheduling: A loan remanence makes sense if the interest rates of current loan offers are more favorable than those of your existing debt. You can also reschedule if you have taken out several loans. You can save interest and improve the overview of your finances when you combine the loans.

 

Revocation action, date on which the claim was initiated and date of the debtor’s deed

 

I ask you whether it is possible to declare a donation ineffective, through an ordinary revocation action, starting from the assumption that the LESION OF THE ASSETS in the event of revocation, must be considered at the moment in which the deed of sale takes place and everything that happens afterwards. does not concern (Cassation sentence 23743, filed November 14, 2011).

In the light of this sentence, the following is specified: AT THE DATE OF DONATION MADE FROM THE DEBTOR TO THE CONJUGER, THE CREDITOR WAS GUARANTEED TO BE POSSESSED OF THE SPECTANT DISPLAYED TO THE DEBTOR, WHICH AT THAT DATE HAD MADE LIQUIDATION FOR MORE THAN 100,000.00 EURO, THAT THE CREDITOR WOULD HAVE TO HOLD TO COMPENSATE ITS CREDITS. THE DEBTOR ALSO IN THE AGE OF DONATION ALSO HAS AN ACCOUNT COINTESTATE WITH THE CONIUGE WITH AN ACTIVATE OF MORE THAN 130,000.00 EURO DEMONSTRABLE FROM THE ACCOUNT EXTRACT.

Given this situation, it is not clear how the donation act had damaged the guarantee of assets, THE CREDITOR, abundantly guaranteed, given that it had the possession of the aforementioned liquidation, and could also seize the money on the joint account. THANK YOU

 

The aforementioned ruling relates to a debtor who had obtained a current account credit on the basis of the assets photographed on the date of assignment.

Subsequently, before withdrawing money, and then before actually benefiting from the contractor, the subject had stripped off the properties he held, alleging, following the revocatory action by the bank, that the onset of the credit had taken place subsequently to the deeds.

The judges concluded that, in the event that the credit arises from an opening of credit or bank credit, it is with reference to the date of the latter that the prior credit must be verified, to no effect that the actual use of sums, or the revocation of the custody, occurred after the fraudulent act.

In any case, here we try to clarify legal aspects related to concrete situations, while it is certainly not our purpose to question the judgments of the Court of Cassation.

 

 

Debt collection calls the debtor’s neighbor on the phone – No presumed circular can justify or excuse such conduct

 

Unfortunately for about a year I have been dealing with various debt collection companies, this morning at about 8 o’clock, a call center operator of one of these agencies called my neighbor, alleging that she had urgent communications for me but she could not to contact me, so he gave his surname and a fixed telephone number to contact her.

When I was able, I recalled the number, finding out that it was a debt collection company, I asked to speak with the lady who had requested the contact but was not available, I then asked to account to those who answered their behavior, these were the motivations:

1) have tried to contact me, from about 2-3 days, without success to my cell phone, through phone calls and text messages
2) the number of my neighbor is public because it can be traced from the blank pages
3) not having specified the reason for the phone call have in fact respected my privacy
4) acted on the basis of a “circular” in their possession that allows this type of research of the debtor.

Personally, as a matter of principle, if I receive phone calls from a number, especially during working hours, I can not associate with someone, I do not answer and I ignore sms or messages what’s app like “urgently contact the number xxyyz for communications concerning” and I do likewise if these contain generic instructions for payments showing amounts for an outstanding installment plus miscellaneous expenses and how to carry them out.

My reaction was to write a registered letter to the principal, where I asked to be aware of the behavior of the debt collection company and I asked for the future, that the first contact by the recovery company delegated by registered letter A / R in which is specified in detail what is required, that I will not eligible for requests made with text messages, what’s app, etc. and that if you repeat similar situations, I will deny my consent to use the telephone channel to contact me.

I kindly request your opinion from experts, on the behavior of debt collection and on the legitimacy of what I have requested from the financial institution.

 

In the specific case, the counterparty can not contest the privacy of the debtor if the reason for the call was not specified and if the calling party did not qualify to the neighbor as a credit recovery officer (even if the phone number left could make trace anyone back to the object of the call). Notwithstanding, however, the debtor’s right to require that any communication of the creditor be forwarded by mail to the address communicated at the time of signing the contract, excluding any other channel, and / or that neighbors, relatives and the employer are contacted. work.

It is not possible to avoid the debtor being traced through requests to the registry offices or, more economically, using the blank pages. But no presumed, not better specified, circular (or quadrangular) in the possession of the creditor, can authorize unwanted telephone contacts with the debtor and even less, with relatives, friends acquaintances of the debtor or other third parties.

If between the original financial creditor and the company, in which the employee who has contacted his neighbor is working, a contract is underway, he did well to distrust the principal; otherwise, if the loan was sold, the letter of formal notice from further pursuit of similar conduct should be addressed to the assignee.

His reaction was in accordance with the law and is fully legitimate.