How to close a loan in full and in writing: who to trust
The “balance and write-off” transaction is a method of closing the debt contracted with a creditor, usually a bank or a finance company, which involves the payment of an amount in full extinction of the debt.
Who can get a balance and get rid of the loan
Generally it can be granted to the debtor who is in difficult economic conditions and who, for this reason, fails to honor the commitments made with the creditor. Normally it is a modality that provides for the payment in a single tranche of the amount agreed with the creditor which will thus release a large and total release. Sometimes the creditor accepts the installment payment of the agreed amount but, in this case, will only release the debtor upon full payment of this amount.
What are the amounts for a balance and writing off
There is no set amount or percentage value of the default debt; the definition of a debit balance and write-off is always subject to acceptance by the creditor. Each debtor has his own financial and equity condition and this is what influences the valuation by the creditor. It is clear that the higher the guarantees held by the creditor, such as mortgages on registered buildings or movable assets, guarantees given by third parties, possible foreclosures by third parties (eg on pensions, salaries, bank accounts) and the more creditor will be reluctant to accept an offer in full and in writing.
The advantages of the balance in writing for the debtor
A debtor who fails to honor his commitments is in danger, right from the start, of being reported in the databases of bad payers Credit Information System, perhaps the most well-known end-to-end knowledge company thus compromising his access to the credit with all the imaginable consequences. The report is made by the creditor bank or financial institution and it is only after the payment of the debt and the passing of the times provided for by the law that the debtor will have the notification canceled.
The advantage, therefore, of extinguishing the debt with a balance and writing off is undoubtedly that of first obtaining a discount on the debt and, then, the definition and, therefore, a faster readmission to the credit system. These advantages, however, can only be obtained if all the deeds, from the balance and entry to the relative releases, are made following the rules scrupulously; and this is why it is always advisable to be assisted by banking and credit experts.
Astrofinance has always been at the forefront in assisting individuals and businesses in defining their disputes with banks and financial institutions, and in negotiating to obtain an amicable definition of the dispute.