It is difficult to imagine modern realities without loans - it is believed that this is the easiest and fastest way to get what you want. That is why it often happens that borrowers, both private and legal entities, are unable to fulfill their financial obligations to creditors. In particularly hopeless cases, the last thing left is only to sell the debt.
Buying and selling debt
Debt sale is the same contract of sale, or a civil law transaction in the form of a gift, because this process can be either monetary or non-repayable. As a result of such an agreement, under a specific contract, one creditor is replaced by another. In other words, buying a debt is an assignment of creditor rights.
When selling a debt, it is worth remembering that no one except the court has the right to force the debtor to fulfill his financial obligations to the creditor. However, the refusal of the credited person to pay off his debt leads to the fact that under Art. 69 of the Federal Law No. 229, bailiffs are authorized to realize the property of the debtor in order to cover its debt obligations.
However, in a number of cases, the bailiffs lacked authority to enable them to deal with the debtor so seriously. Therefore, the creditor has no choice but to sell the debt. Russian laws do not prohibit sale-purchase of debt, if the presence of the latter is confirmed by a court. An agreement on the transfer of creditor rights is concluded at any time, up to the full repayment of the debt. At the same time, the consent of the debtor to such a transaction is not necessary - it is enough that the loan agreement has a clause on the assumption of transfer of rights of the creditor.
Purchase of debt under writ of execution
Debt can be sold to any third party, physical or legal, - a collection agency, an individual citizen. Before this, the creditor must take a writ of execution in court and forward it to the bailiff service, as well as write a statement. Based on this, the FSSP opens enforcement proceedings for exactly 7 days. Only then can an agreement be made with the collectors. Then it is necessary to transfer this agreement to the bailiff so that the official is aware of the assignment of the rights of the creditor.
However, the bailiff may close the enforcement proceedings if the debtor is hiding or his financial situation is extremely difficult. In this case, the writ of execution shall be returned to the claimant. The creditor then has the right for three years to both write off the debt and re-apply with the beginning of enforcement proceedings. In this case, it is also possible to transfer their rights to the collection agency.
Collection agency and debt purchase
The main buyers of debts remain collection agencies. Debt sellers and buyers are mainly found on thematic sites on the Web. The amount of debt purchases depends on many factors - the amount of the loan, the availability of a writ of execution, the time of delay, the financial solvency of the borrower, etc.
In most cases, the lender receives from the agency no more than 35% of the loan amount (interest is not counted here). The presence of a writ of execution in some cases allows you to increase this amount to 50%.
Purchase of debts of individuals
The main sellers of private debt today are banks. They put up debts at a special auction, where professional buyers, having analyzed the characteristics of the debt (the solvency of the debtor, the delay time, the possibility of communication), decide to purchase this debt. As a rule, they plan to receive from the borrower an amount two, or even more times the cost of their purchase.
I must say that the purchase of debts of individuals does not have a legislative base. Therefore, the borrower is not prohibited from obstructing this process. In practice, a debtor can even “bargain” with collectors (naturally, not all borrowers have enough patience and necessary knowledge for this). It is only authorized to pay money to the agency upon conclusion of an agreement. Signatures in the contract are best placed in court.
Purchase and sale of debts of legal entities
The purchase of debt is regulated by Art. 382-386 of the Civil Code. The purchase of debts of legal entities is the acquisition, in fact, of the most hopeless past due obligations. Therefore, collectors acquire such debts for no more than the amount of 10-15% of the initial loan amount. The Civil Code of the Russian Federation obliges the acquirers to notify the debtor in writing of the assignment of creditor rights. If the requirements of the collectors are illegal, then the borrower is entitled to refuse to cooperate with them.
Often, legal debtors benefit from buying debt - collectors in some cases ask to pay off only half of it. But at the same time it is profitable for a certain agent to “shake out” as much as possible of the borrower, as the size of his commission depends on this.
Debt apartment purchase
Finally, we touch on such an unpleasant moment as buying an apartment with debts for utility bills. Immediately, we note that the management company does not have the right to demand their repayment from the new owner - only contributions for overhaul will be an exception (LC RF Art. 153, paragraph 2, paragraph 5). If a court order to collect the debts of the old owner came to your name, then you must write an objection to the addressing court as soon as possible, enclosing copies of the contract of sale and documents of your ownership.
To protect yourself from such a situation, the following must be done before purchasing:
- Personally ask for the seller’s debts at the HOA or UK office.
- Scan the lists of debtors on the website of the Criminal Code or utilities in your city.
- Get the necessary information from the concierge.
- Ask the seller to provide information about his lack of utility debts.
Buying debt is a common and permitted phenomenon in our country. Today, debt acquisition is practiced by both physical and legal borrowers. The main purchasers remain collection agencies.