How to Settle Debts with Banks

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Having a bank loan is really hefty, especially when facing an unexpected crisis that could compromise your ability to pay. Most debtors suffer from this scenario due to inevitable cases of emergencies that cripple their allocation for loan payments.

Debt Settlement with Banks

 

The COVID-19 pandemic is one best example of a crisis that discouraged many debtors from not paying their debts. Many had lost their jobs and filed for bankruptcy since most businesses have been closed when the virus started affecting billions of people and pushed the governments to implement community quarantines.

The financial drought indeed paved a way for people to pay more than what they owe. The late payment fees made their outstanding balance to immensely rise, which adds to their current stress and dilemmas. That is why most of them decided to negotiate and settle their bank loans in order to get a breathing room.

Now, you might think that settling debts with banks is easy, but it is actually difficult especially when you have no proper guidance on how to do and prepare for a negotiation. There are a lot of things to consider once you try to negotiate with your creditors; hence it is really a must to find a partner that could help you secure a debt relief.

Suppose you are from Israel and would like to settle your loans with Israeli banks, Adv. Maor Levy is the best option to assist you in processing your bank debts. He is a successful lawyer that holds a B.L.B. in Law and is a member of the Israel Bar Association. And with his bank debt settlement experiences, he is the perfect fit for your הסדר חוב מול הבנק needs.

Once your loan application from banks is approved, you will be provided with an agreement that you need to pay a specific amount every month called amortizations. It is an accumulated amount of your borrowed loan plus the interest rate that is being charged. In cases wherein you face an unexpected crisis such as a sudden job loss, injury, or severe illness, your eligibility for paying loans will be compromised, resulting in delayed payments that could immensely increase your debts given the high-interest rate and hefty late fees. Therefore, most debtors can no longer pay the outstanding balance and would resort to debt settlement with the bank.

Given you’ve chosen Adv. Maor Levy as your lawyer, he will likely ask you to deposit a certain amount of cash into a savings account which will be used as payment for the negotiated settled amount. And since the processing might take up to three to four years, he will start negotiating with your bank for the approval of your request for the meantime. He will also ask you to seize your monthly obligations because a creditor wouldn’t possibly permit a debtor for settlement if the latter can still make payments.

Debt Settlement with Banks

Therefore, re-negotiating debts might look like an easy job, but it definitely isn’t. The risks are too high hence it is a must to think wisely as to which third-party debt settler fits your needs well. And since debt settlement can be expensive and will take a long period of time, always be careful in choosing your professional guide on how to settle your loans properly.