The over-indebted can seize the Commission of over-indebtedness in the event of manifest incapacity to settle monthly payments towards its credit institution. If the file is admissible, a recovery plan is put in place. The details.
The recovery procedure
The over-indebtedness plan aims to put in place all the procedures and formalities relating to the facilitation of the reimbursement of debts contracted by natural persons. The latter being unable to repay their debts.
To be able to benefit from it, the applicant’s file would have to be admissible. It is only from this point on that the Commission for over-indebtedness will begin all the stages inherent in the negotiation, to bring the repayment capacity of the over-indebted into harmony with the interests of the credit institution concerned.
The repayment capacity
To define this repayment capacity, the recovery plan will take into account several parameters, starting with the “daily life budget” of the over-indebted. This budget is calculated according to the criteria of the Over-indebtedness Commission. In this sense, certain expenses related inter alia to clothing, food, … must respect the established scales. Fixed expenses are also taken into account on presentation of invoices by the over-indebted. The goal is to make repayments while ensuring a decent life for the household.
From the sale of heritage to erasure
At the end of this process, several scenarios may arise. Debt settlement can, for example, be suspended for a specified time, until the over-indebted can find a more or less stable situation to resume repayment. The deadline may also be revised for a longer period in order to lighten the debt load.
Part of the assets of the over-indebted, apart from what he needs to ensure his daily life, can also be put up for sale. Partial or total debt forgiveness is also a possibility. In any case, the over-indebted must not venture to take out a new loan during the execution of the recovery plan. For clarification, this plan can last up to eight years. A deadline which will be revised to seven years from the year 2016.
Over-indebtedness plan accepted or refused
If both parties accept, their signatures will be affixed to the plan in addition to that of the commission president. But in the event of refusal, a report is drawn up. However, the over-indebted can request “imposed measures” within 15 days. Note that the plan can be revised or renewed.