What are the difficulties of a loan despite the enforcement order

An enforcement order will be carried out if all dunning procedures have failed. A claim does not become statute-barred through an enforcement order, the creditor can still claim it years later. If the debtor ignores all reminders, the creditor can initiate enforcement. Briefly explained first comes the order for payment then the order for enforcement. With an enforcement notice, for example, the wages or other values ​​can be attached. In addition, an enforcement order is entered in the customer’s Credit Bureau, which causes considerable difficulties with a loan despite the enforcement order.

The loan despite the enforcement order – the prospects

The loan despite the enforcement order - the prospects

In principle, when taking out a loan, you should have a good credit rating, which is made up of a sufficiently high and regular income and an impeccable Credit Bureau. Banks in Germany have strict requirements. Credit Bureau has saved the enforcement order as a hard feature, which makes it difficult to obtain a loan despite the enforcement order. Because the bad Credit Bureau tells the bank that the loan seeker has not met his payment obligations until it has been enforced. If the wage is also attached to an enforcement notice, the customer must still receive an attachment-free amount.

It is calculated from the marital status and the number of children. If the customer does not earn that much, the garnishment exemption limit can be such that no garnishment can be carried out. If such a case occurs, the creditor can request an affidavit, previously an oath of disclosure. Then the customer has to disclose his assets. An enforcement order is valid for 30 years, as long as the creditor can keep trying to get his money. A difficult situation, considering that there are still children in the household.

Under certain circumstances, a loan could be obtained with a solvent guarantor despite an enforcement order. However, the extent to which the bank is obliged to report client assets to creditors remains to be seen. Anyone who includes a guarantor in his desolate situation is not acting responsibly. The enforcement order and the often subsequent affidavit made the customer insolvent and not creditworthy. A loan should be paid despite the enforcement order and if the situation is so bad before the loan is taken out, a guarantor should not step in.

The bank would then have to inform a guarantor of this. The other version of a guarantee would be if parents vouch for their child. You would then give him the chance to get back on his feet. If a loan default then occurred, they could pay the loan, provided their financial situation allowed it. But be that as it is, a bank has to be found that will approve a loan despite the enforcement order.

The loan from abroad

The loan from abroad

You don’t want to demonize these people, many have got into such a situation through no fault of their own. It is not just the people who buy everything together and think of the deluge after me. They are serious people who have played a bad trick on life. It remains to be seen how such a situation can arise. Such a customer only needs to have guaranteed someone once and the debtor has not paid. The guarantor’s assets have not been properly assessed and he cannot pay the loan. An enforcement order would then mean the ruin of a person.

For a loan seeker who is looking for a loan despite an enforcement order, this may mean that he can no longer participate in normal payments. Many banks then also terminate the account, the customer has to transfer everything in cash, which then entails additional costs. There is still no legal regulation that a bank must set up a credit account for its customers. Even debtors have to pay bills such as rent, electricity and other costs.

Since the enforcement order is entered in the Credit Bureau, a foreign credit would be considered for a soft feature like an unpaid invoice. But the banks from abroad also have strict requirements. The Credit Bureau is left out, a loan is not entered despite an enforcement order. These banks do not see the Credit Bureau, but inspect the public debt register, where attachments, foreclosures, enforcement orders and bankruptcies are noted. This is also the credit line for loans from abroad.

The way out

The way out

Ultimately, there are still relatives or friends who can be asked for a loan despite an enforcement order. If you can credibly insure and prove that a loan is repaid, one or the other could agree to it. If a lender is found, a proper contract should be made that shows the loan amount, the installment amount and the terms.

If you urgently need cash, you still have the pawnshop. Anyone who has valuable things like valuable jewelry or high-priced media equipment could pawn them at the pawnshop. The items are estimated on site and the value paid out in cash. However, a deadline is set until when the things have to be picked up again. If this does not happen, they will be put up for auction and sold.

One would like to tell a loan seeker that his financial situation actually does not allow any more credit. Very few customers still have enough money to pay installments. If this were the case, the creditors would have already claimed the money. Maybe you should use this time to get your finances in order and live on the back burner. The time comes when the debts are paid. If the customer has not yet given debt advice, then he should do so now. Because this time is suitable to regulate all financial possibilities. The debt counseling staff specializes in difficult cases.