Can a written off debt be collected?

Can a written off debt be collected?

Debt forgiveness

The total or partial cancellation of the outstanding debt can be achieved on the basis of a methodical work against the bank. For them you have read all the measures and tools that you have in your hands in our entry. This work or guerrilla warfare is aimed at remaining debt-free and housing. The more you have paid the more you have the right to raise this solution.

Do not confuse this solution with the explanation of the dation in payment that we have in this post. In all cases, except in the dations fruit of the Decree of Second Chance of the government (27 February 2015) the forgiven debt is taxed to the Treasury as an income, attention!

The partial debt write-off has been one of the formulas that some countries like Iceland applied on households instead of saving the banks. Banks will always refuse such a formula because they have a lot of power in this country.

Individuals can already file for insolvency proceedings if they feel they cannot pay their debts but not for mortgage debts. Thus, if a person could not pay the mortgage, he/she still owes money to the bank even if he/she has handed over the house, and this debt cannot enter into a bankruptcy regime supervised by the judge to reduce the payments.

Forgiveness of bank debts in colombia

An example of this is when the Canadian Chase Bank forgave all debts in its credit card portfolio.    If the creditor considers that the debt collection is higher than the balance owed. In this case the account is classified as a loss.

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In most cases these consequences are linked to credit reporting and tax issues. For this reason it is not convenient to ask for credits lightly, because yes, in some cases we will get the exoneration of the debts, but nobody can guarantee that it will be so.

On the other hand, the use of debt exoneration and restructuring regulations may cause the debtor to lose part of its assets, for this reason many aspects must be taken into account when applying for credit.

Waiver of interest

The remission, remission or forgiveness of debt is the legal act by which a creditor expresses its will to extinguish all or part of its credit right, without receiving anything in return. It involves the extinguishment of (all or part of) a debtor’s obligations to its creditor.

The term debt forgiveness is often used to define the same concept. Although they mean virtually the same thing, the difference is that debt forgiveness is the official (legal) forgiveness of the debt, while debt forgiveness is the cessation of payment of that debt.

The creditor will consider waiving part or all of the debt when it believes that the consequences of non-payment will be much more drastic for one or both parties, with debt forgiveness being the best alternative. Once the waiver has been made and accepted by the debtor, the obligation is officially extinguished.

Examples of forgiveness

Forgiveness, remission or forgiveness of debt is the legal act by which a creditor expresses its willingness to extinguish all or part of its credit right, without receiving anything in return. It involves the extinguishment of (all or part of) a debtor’s obligations to its creditor.

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The term debt forgiveness is often used to define the same concept. Although they mean virtually the same thing, the difference is that debt forgiveness is the official (legal) forgiveness of the debt, while debt forgiveness is the cessation of payment of that debt.

The creditor will consider waiving part or all of the debt when it believes that the consequences of non-payment will be much more drastic for one or both parties, with debt forgiveness being the best alternative. Once the waiver has been made and accepted by the debtor, the obligation is officially extinguished.

Can a written off debt be collected?
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