If the loan remains unpaid, the financial institution will prepare for a seizure and collect the debtor’s assets, such as wages. If a person is stuck in wage garnishment he should contact a tax relief professional. To avoid foreclosure, it is vital to address it as soon as one individual believes payments may be impossible.
Foreclosure is a type of coercive execution by the court that forbids the debtor from freely disposing of property in order for the creditor to collect the debt. In general, the debtor’s assets are liable to seizure. Salary seizure refers to the seizure of the debtor’s entitlement to receive a salary claim.
This section describes the flow of wage garnishment.
Flow leading up to wage garnishment
The following sequence is frequently followed from the delinquency of the debt to the seizure of the pay.
If the repayment date has passed, a person will receive a phone call, postcard, etc. to remind that person to pay early.
One will also be charged a late payment fee for the number of days he is late, but if the person can resolve the delinquency at this stage, it will not usually result in a seizure.
2. Registration of accident data
If a person is unable to repay, the borrower’s card will be suspended, and “late” information will be sent to the credit bureau. In theory, information showing that there was a difficulty with payments, such as delinquency of repayment or debt consolidation, is also referred to as accident information. Borrowing from other firms will also become problematic. Contact a tax relief professional if a person is stuck on what to do and what not to.
3. Lump sum bill
If a person continues to fall behind on his payments, he will be requested to pay in one lump sum rather than in installments as one has been.
This is because the loan contract frequently states that if the repayment is postponed even once, the advantage of the term is forfeited.
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4. Notification from the Court
A “debt title” that notarizes the existence and extent of the right is necessary in order to submit a petition for forced execution. A final judgment and a demand for payment with a declaration of preliminary execution are examples of titles of obligation.
If the creditor files a lawsuit or a payment demand in court and the court approves it, a document such as a complaint or payment demand will be delivered.
If the debtor does not respond to the complaint or demand for payment, it may be recognized that there is a claim as claimed by the obligee, a judgment may be obtained, or a demand for payment with a declaration of provisional execution may be finalized.Hence, it will be possible to apply for compulsory execution.
In addition, even if a person takes measures such as submitting a written answer, unless there are circumstances that are advantageous to the obligor, such as being able to invoke the extinct prescription, the obligee’s claim will usually be accepted and the title of the obligation will be acquired.
Based on this, the obligee who has acquired the title of debt will submit a petition for compulsory execution. The further to the right in the preceding diagram you travel, the more difficult it will be to prevent a seizure. Documents such as reminder postcards, advance notice of seizure for lump sum bills, and court complaints indicate that seizure is imminent.