It is the end of an economic existence. If an affidavit is made, a person flees under the protection of creditors, but personal bankruptcy can no longer be averted. Since the end of an economic existence does not mean the end of the debtor’s current existence, the debtor looks for ways to get back on his feet. A loan is often said to save. But a loan despite an affidavit is very difficult, especially since there are also certain legal difficulties.
Credit despite affidavit: what is an affidavit?
The affidavit is not only in the financial world, but also in numerous areas of the judicial and economic system. It is a legally binding declaration that a statement made is one hundred percent true. If the affidavit occurs in the financial world, it is a matter of foreclosure, which is popularly known as an oath of disclosure or “raising your hand”. By doing so, the debtor assures that all information provided by him about his financial situation is complete and that he does not keep any values that the creditors could use to fulfill their claims in the course of enforcement. The oath of disclosure is the first step in personal bankruptcy, which is essential because it goes hand in hand with the protection of creditors. Law also grants highly indebted people the right to a living wage. If a person flees into the protection of creditors through the affidavit, the creditors may only skim the income and values that are above this subsistence level. However, if the debtor does not disclose assets or assets, this is fraud against the state and the creditors and is regarded as a criminal offense and in some cases is subject to severe prison sentences. No bank therefore grants a loan in spite of an affidavit without further ado.
Credit despite affidavit: where can you get it?
Because the banks know from the affidavit (many banks voluntarily require an oath of disclosure before lending if they suspect that the borrower is not hiding anything) that the borrower will probably not be able to repay the loan (in Private insolvency pays every cent of the income that is above the subsistence level to creditors) – and almost worse: That there are also numerous other creditors who want to satisfy their claims. The following applies: old debts come first. The usual trick with a guarantor (if you can find one at all, which is extremely difficult under the given circumstances) is also ruled out, since in most cases lending seems too puzzling to most banks. The only way to get a loan despite an affidavit is to go to a foreign bank that has no knowledge of the situation in the country and does not ask for it. Corresponding offers can be found on the Internet. But these banks will also demand collateral for the repayment of the loan and, of course, they too can sue open claims before a court – at the latest then there will be an oath of disclosure and the borrower may have the next legal problem, because the foreign bank is dealing with fraud sued.