Loan not paid for 3 years - what will happen? Can a loan be written off after the statute of limitations?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Getting a bank loan to get rid of financial obligations is a good idea, but risky. If the borrower has problems with payment, he may become a debtor. A long delay leads to huge pen alties and fines, seizure of accounts and possible loss of property. But in Russia there is a limitation period for credit agreements. It is 3 years old. After the expiration of the limitation period, the bank has no right to present claims against the debtor. Therefore, many borrowers want to know the answer to the question: if you do not pay the loan for 3 years, what will happen?

The concept of limitation period

Many borrowers want to take a loan and not pay on it, but according to the law this is possible in exceptional cases. One of these is the expiration of the limitation period under the loan agreement.

Relations between the lender and the borrower are regulated by the Civil Code of the Russian Federation. In Art. 196 of the Civil Code of the Russian Federation, the limitation period is specified in relation to the debtor, after which the bank is not en titled to make claims forreturn the debt. The term is 3 years.

How is the statute of limitations calculated?

According to Art. 196 of the Civil Code of the Russian Federation, the creditor's claims against the debtor terminate with the expiration of the limitation period. But you can’t just stop paying debts on loans if the client does not understand the peculiarities of the procedure. Asking the question: “I haven’t paid a loan for 3 years, has the statute of limitations expired?”, payers want to be aware of when loan obligations end.

One of the important points is the correct calculation of the statute of limitations. Some clients mistakenly assume that it starts from the moment the loan agreement is concluded. This is a misjudgment.

According to the legislation, the date of the report is the last day of the payer's fulfillment of his obligations, after which he ceased to fulfill the requirements under the loan agreement. This is the date of the last loan payment.

Debt cancellation terms

One of the ways to write off debts on loans is the expiration of the statute of limitations. But for exemption from financial obligations, the following conditions must be met:

1. The creditor has not made a claim for payment of the debt within 3 years from the date of the last payment.
2. No administrative proceedings were initiated against the borrower under a consumer loan agreement.
3. The client did not deliberately hide from his duties.
4. The borrower did not hide his income and has problems with money.
5. Obligations under the client's loan agreement were not transferred to third parties, for examplecollection agency.
6. The payer did not receive any notification of the need to pay contributions under the consumer loan agreement.

The main requirement, according to which the borrower can hope to write off debts on the loan after 3 years, is the absence of reminders from the bank. If after 3 years from the date of the last payment the creditor did not require payment under the agreement, the limitation period for the loan is considered to have expired. In this case, the borrower has the right to count on the cancellation of the balance of the debt with accrued fines and pen alties for a three-year period of non-payment.

Consequences of non-payment on a loan account

Expect that the bank will forget about the payer's debt for a period of 3 years, lawyers do not recommend. The chances of writing off debts under Art. 196 of the Civil Code of the Russian Federation are less than 0.04%. In addition, evading the fulfillment of financial obligations to the bank can be regarded as fraud, and this entails criminal punishment (Article 159 of the Criminal Code of the Russian Federation).

If the client (due to financial problems) decided not to pay under the contract for 3 years, counting on the loan being written off after the period, he should be aware of the negative consequences.

If the loan is not paid for 3 years, what will happen?

• The credit history will hopelessly deteriorate. The borrower may forget about the possibility of obtaining borrowed funds even in microfinance institutions.
• The bank may demand early repayment of the debt. Liabilities can be applied to debtors who are in arrears infor 3 months or more.
• All borrower's accounts will be frozen. The client will not be able to use debit cards and deposits until he pays off his debts.
• The Bank may transfer obligations under the contract to a collection agency. Collectors are less loyal to debtors, and conflicts with them can backfire on the reputation of the payer.
• Involving the debtor's relatives in payment.
• Criminal proceedings may be initiated against the client. If it is proved that the borrower deliberately evades paying a loan in excess of 500 thousand rubles, prosecutors may take him for a fraudster.

Bringing the debtor's family members to liability

Clients who become indebted risk more than just their reputation. If you do not pay the loan for 3 years, what will happen to their relatives?

Firstly, the debtor's spouse is unlikely to be able to get mortgage approval, as the bank will definitely pay attention to the debtor's credit history.

Secondly, collection agencies, to which banks transfer rights under loan agreements in 78% of cases, often demand a return from all family members. Regular unpleasant calls, notifications and meetings with collectors are only a small part of the negative consequences that a long-term debt of a family member entails.

If the fact of fraud on the part of the borrower (which implies the institution of a criminal case) is proven, his family may not only lose peace of mind, but also losetrust and respect of acquaintances.

Legal Advice

When the first financial problems arise, it is recommended to contact specialists who are competent in economic matters. They will help you make the right decision to avoid negative consequences and the status of "perpetual debtor".

What do lawyers advise clients who cannot pay their loans? After studying the situation of the borrower, they help decide how to legally not pay the loan to the bank or reduce the amount of contributions. This can be done in several ways:

• apply to the bank to change the loan agreement;
• if there are errors in the documents, file a claim against the creditor;
• attract co-borrowers or guarantors for payment (if they are specified in the contract);
• use credit insurance;
• declare bankruptcy.

Changing the loan agreement at the bank

Counting on the fact that the bank will forget about paying the debt for 3 years is very risky. There are more affordable ways to write off debt on loans. One of the most accessible options is to contact bank managers.

The credit officer should explain in detail what led to the financial difficulties. A visit to the bank means that the borrower is interested in maintaining his good reputation as a client and is ready to fulfill obligations at least partially.

To the question: "If you do not pay the loan for 3 years, what will happen?" - banking specialists are unlikely to answer the borrower. Therefore, you should not inform managers about the intention to evade payments.

To improve the terms of the loan agreement, you should take your passport, loan documents and a certificate of income with you. After considering the application, the bank may decide:

• write off part of the interest that was accrued after the client's financial difficulties;
• restructure the loan. The term of the loan agreement will be extended, but the payment will be much less;
• refinance an existing loan at a lower interest rate.

Filing a claim against a credit institution

Not all loan agreements are drawn up in accordance with the requirements of the law. An experienced economic lawyer can find errors in the bank's documents, and this is already a reason to appeal the calculation of interest or cancel the contract.

The web has information about whether banks write off debts on loans if there are errors in the loan agreement. 6% of clients managed to win the lawsuit and write off the debt completely. Most of those who won in court (97%) borrowed funds from microfinance institutions. The chances that a large financial institution, such as Sberbank or Sovcombank, will make mistakes in a consumer loan agreement are practically zero.

The client can go to court if the bank does not fulfill the obligations under the loan, for example, does not notify about the need to make payments 2-3 days before the due date or credits the funds late. In such a case, the courtcan take the side of the debtor and write off part of the debt by suing the money from the bank. The debt on the loan and the statute of limitations in this situation will not affect the course of the trial.

Attracting others to pay

If co-borrowers or guarantors are specified in the loan agreement, they can assume payment obligations. The bank, in the absence of actions to repay the debt by the title borrower, in 98% of cases turns to other members of the agreement for the return of borrowed funds.

Evasion of payment by the guarantor or co-borrowers can also lead to negative consequences. Can they write off a loan due to the statute of limitations in relation to them? Yes, because according to the law, everyone who is related to the loan agreement can take advantage of debt relief.

But guarantors or co-borrowers will be exempted from paying the loan only after the main borrower is recognized as incapacitated or bankrupt, as well as when the conditions of the limitation period are met (lack of a reminder from the bank within 3 years from the date of the last payment).

Return of debt by the insurance company

If the client has taken out insurance, he can legally rid himself of debt. In case of job loss, if it was included in the list of risks, the insurance company will pay the loan for the client. Involuntarily leaving work is implied, for example, as a result of layoffs.

To exercise the right, the borrower must, immediately after the end of the employment contract, submit documents to the bank that confirm his financial situation. Bankwill transfer the claims to the authorized company, and the loan will be paid by the borrower's insurer.

Bankruptcy proceedings

Not all borrowers with financial problems seek to declare themselves bankrupt. But everyone is interested in the answer to the question: what are the consequences for non-payment of the loan? “I haven’t paid a loan for 3 years,” they say, and many choose this way to legally get rid of obligations.

Bankruptcy is a growing option to write off credit debts. It can be used by bank customers who do not pay under contracts for at least 3 consecutive months with a total debt of 500 thousand rubles (minimum). The advantage is the complete write-off of residual debts on loans after the sale of the borrower's property.

Those who have nothing to lose seek to declare themselves bankrupt: the procedure involves the sale of clients' property in order to pay off debts. If the property is not enough to fully repay the loan, the bank is forced to forgive the debt.