The Russians were told how to defer loan payments – Rosbalt

In Russia, there are several legal ways to reduce the debt burden and defer payments on loans and microloans. Ivan Solovyov, Honored Lawyer of the Russian Federation, told PRIME about this.

He recalled that a debt obligation, by its nature, is divided into three parts: the amount itself, taken on credit, financiers also call it the “body of the loan”; interest accrued on this amount; penalties, forfeits and penalties prescribed in the contract in case of late payments.

As the lawyer pointed out, it is possible to reduce the “body of the loan” with the help of the bankruptcy of an individual. In this case, in the absence of liquid property, at the expense of which debt obligations can be repaid, the latter will remain unfulfilled. However, the expert warned that such a procedure takes a lot of time and carries reputational risks.

Solovyov believes that the most effective mechanism is refinancing. It is voluntary in order to reduce the financial burden. “Despite the reduction in the resulting amounts received from the loan, many credit organizations go for it, realizing that such a decision can ultimately guarantee the prompt return of the loan body and a certain part of the profit,” the lawyer explained.

In addition, he noted, you can take advantage of credit holidays if you can bring reasonable arguments for deferring loan payments. The reason for this may be a change in the financial situation of the borrower due to job loss, illness, temporary disability, death or illness of a close relative.

The expert also indicated that in connection with the COVID-19 pandemic, individuals and legal entities affected by restrictions due to coronavirus infection are eligible for a simplified grant of a delay of up to six months.

As for loans or microloans, many financial and credit institutions “will be happy to provide such an opportunity to their client, but only after the full repayment of interest on the body of the loan,” Solovyov believes. After all, in some ways it is even beneficial for banks and microfinance organizations – the longer a person owes, the greater the amount of interest he will pay, he explained.

According to him, another option “to reduce or even get rid of your debt burden” is to prepare and file a lawsuit to challenge the terms of the loan agreement itself, if grounds can be found for this.

“Any of the above methods can be effective in a difficult life situation. However, when deciding whether to take a loan or a microloan, the most important thing is to soberly and impartially assess two things: the need for a loan and your ability to repay and service it, ”summed up the lawyer.