It is a shock. Suddenly there is the official envelope of a bailiff in the mail. You carefully open the envelope, remove the paper and hold an official enforcement order in your hands. The situation in this case is already extremely serious, because from now on there is a threat of a visit by the bailiff who appears to be attached. You can prevent this by paying the debt. To do this, many people want to take out a loan. But how do you get a loan despite an enforcement order?
A loan despite an enforcement order: what is an enforcement order?
Actually, according to financial experts and lawyers, a debtor should no longer be surprised by the enforcement order, because this is preceded by some other steps that should have made it clear to the over-indebted person that their financial situation is extremely difficult. An example is intended to illustrate what an enforcement order is and how you can prevent it from being received by cleverly taking out a loan.
Suppose a person borrows a certain amount from a bank, for example 5000 dollars. It does not meet the payment obligation. As a result, she receives several payment requests from the bank. The outstanding amount increases during this time due to processing fees and interest. The person still doesn’t pay. In the next step, the bank obtains an official order for payment from the district court. The debtor has two weeks to appeal against this. If the person still does not respond, the bank can obtain an official enforcement order, which is sent to the debtor. Again, he has two weeks to appeal. The amount to be repaid is now probably around 7000 dollars. If there is no objection, the bailiff appears and implements the enforcement order and attaches property and assets.
Credit despite enforcement order: the possibilities
In the majority of cases that require a loan despite an enforcement order, people no longer have any collateral. The key question is whether they have a regular income. If this is not the case, they only have the option to ask friends or family for money, to apply for a loan from a foreign internet bank that grants it without checking the creditworthiness in the country, or to apply for personal bankruptcy, which leads to creditor protection and prevents the bailiff from seizing everything.
The situation is easier if you want to get a loan with a regular income despite the enforcement order. The goal is a skilful debt restructuring. This means using the new loan to repay the old debt. The total debt (interest) should decrease, and the rates should be at a level that is easy to manage. People often experience economic turmoil because they cannot pay the monthly installments for their loans. But even with the debt rescheduling loan, it is advantageous if a guarantor co-secures the loan for the bank so that the bank knows that it will definitely get their money back.