In the context of the global economic crisis, we almost every day learn about the bankruptcy of a financial institution. Many borrowers, having learned that their bank has suddenly ceased to exist, naively believe that they now do not need to return the borrowed funds. However, their joy is somewhat premature. After reading this article, you will learn what to do if the bank burst, whether you need to pay a loan and to whom.
What is bankruptcy?
First of all, it should be understood that this process is not unexpected. This phenomenon does not occur in an instant. Those who are interested in whether it is necessary to pay a loan if the bank has broken, it will be useful to find out that bankruptcy is considered a kind of indicator of the insolvency of a financial institution and the inefficiency of its working methods. Moreover, the banks themselves begin to understand what awaits them, long before his customers find out about it. The management of the institution prefers to hush up the problems by attempting to reorganize the weaknesses of the bank entrusted to it. In some cases, such actions give a certain result, leading to the recovery of the financial organization. But sometimes it happens that the efforts of highly qualified specialists do not lead to the desired results and management has to initiate a complex bankruptcy procedure, which often stretches over a fairly long period.
What is the status of a loan after bankruptcy?
Borrowers who are worried about what to do if the bank bursts (do you need to pay a loan in such cases), you should understand that this institution is just one of the links in financial relationships. All the money provided on credit did not appear from the air, so in any case they will have to be returned. Bank bankruptcy does not relieve borrowers of their responsibility. Therefore, you will have to fulfill your obligations.
Who and when is required to notify the borrower of what happened?
All borrowers who are considering whether to pay a loan if the bank goes bankrupt sooner or later receive a written notice from a representative of the company involved in the liquidation of the “bursting” institution. So the client is informed that the right of claim has been transferred to another creditor. The official document must necessarily contain information regarding changes in the procedure for paying off existing debt.
In some cases, the borrower may be asked to renew the contract. Before you put your own autograph under a new document, you must carefully read the conditions specified in it. Those who are interested in whether it is necessary to pay a loan if the bank has broken, should clearly understand that they have the right not to agree to new less favorable conditions. Sometimes a new lender begins to demand early repayment of debt in exchange for a low interest rate and write off all fines. The borrower has every right to refuse, but if there is such an opportunity, it is better to pay off the debt with one payment.
The actions of the borrower, who learned about the bankruptcy of the bank
After receiving an official notice on the liquidation of a financial institution in which a loan is open, the borrower must take several simple steps to avoid possible troubles. First of all, you should not sit and think about whether you need to pay a loan if the bank burst. You should contact the central office of the bankrupt institution as soon as possible. It is there where you can usually find representatives of the so-called interim administration. After presenting your loan agreement, you need to find out new details, which should now be transferred to monthly payments. Do not repay the loan at the old details. This is fraught with huge problems, because your money can simply hang in the system.
If for some reason you have not been given new details, and the deadline for making the next payment is inexorably approaching, you should transfer the money to your previous account and be sure to keep the receipt. In the future, it is she who will help prove the fact of making a payment.
Conclusion
Now you know for sure if you need to pay a loan if the bank burst. Do not waste your time hoping that you will be forgotten or forgiven. Nobody has managed to avoid repayments on a loan taken from a bankrupt bank. In any case, you will have to return the amount taken. Moreover, the monthly payment should consist not only of the main debt, but also of the interest accrued on it. This is very important, since bankruptcy is a phenomenon in which all penalties prescribed in the contract are suspended. But they resume immediately after the right to claim the debt is transferred to the new lender. Therefore, in order to avoid possible problems, it is necessary to make mandatory payments in full and on time.