Credit despite enforcement notice
April 12, 2020
The enforcement order is an instrument that is used when the order for payment procedure has failed. The loan seeker should know that a claim through the enforcement order is not time-barred, but the creditor can carry out the enforcement for 30 years. An enforcement order can be used to attach a garnishment of wages or other values. A negative entry in the Credit Bureau will follow, which will cause great difficulties with a loan despite an enforcement order.
Anyone considering a loan should be able to demonstrate a good credit rating. This is a sufficiently high income that is received regularly and an impeccable Credit Bureau. When banks in Germany grant a loan, they set strict standards. In the Credit Bureau, the enforcement order is a hard negative feature which makes it very difficult to obtain a loan despite the enforcement order. The bad Credit Bureau signals to the bank that there have been significant payment irregularities and especially before the enforcement order.
Then, despite the enforcement order for the bank, the loan is associated with a high risk of default. But what about the customer’s income after the attachment? If the wage is also seized, the customer will receive a garnishment-free amount. This is calculated from the marital status and the children. If the customer does not have a large income, a garnishment exemption limit can be such that no garnishment can be carried out.
If there is such a case that no garnishment is fruitful, the creditor can request an affidavit, previously known as an oath of disclosure. To do this, the customer must disclose their entire assets. An enforcement order is valid for 30 years. During this time, the creditor can always try to get his money.
Regarding this situation, it can be said that a loan could be obtained with a solvent guarantor despite the enforcement order. However, this credit constellation is also a moral issue. Anyone who is in such a desperate situation and pulls a guarantor into it is not acting in a trustworthy manner. The enforcement order and the subsequent affidavit made the customer insolvent and no longer creditworthy.
But a loan should be paid despite the enforcement order. Then some banks wonder how this is supposed to happen. If such a bad credit situation presents itself, then a surety should not be involved either. However, if a guarantor agrees, the bank must make him aware of the great risk. Another situation arises when parents vouch for their children. You would then give him the chance to carry his head up again. However, the financial situation of the parents must also allow this. The bank will examine carefully.
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
Hardly anybody deliberately puts himself in such a situation, many customers have gotten into it totally without fault. It is not only the consumers who suffer from addiction to buy or buy everything that is possible, but also serious people who have played badly in life. How the situation came about is left open. So only someone needs to have given a guarantee, the borrower stopped paying and the guarantor went into ruin because he could no longer pay the installments.
A consumer who is looking for a loan despite an enforcement order can no longer participate in normal payments. Many lenders not only cancel their accounts but also ongoing loans. Since the enforcement notice is in the customer’s Credit Bureau, a soft negative feature like an unpaid invoice would qualify for a loan from abroad. The Credit Bureau does not play a role there, but these banks have access to the public debt register and the execution notice is there. For these banks, too, a reason for excluding a loan.
Ultimately, friends and relatives come into consideration, with whom the customer could ask for a loan. If you appear trustworthy and credibly assure that the loan will be paid again, a lender could find yourself.
If there is an urgent need for money, the pawnshop remains. If the customer still has valuable jewelry or high-priced media devices, these things could be pawned. The value is estimated on site and the value paid out in cash. However, if you do not meet the set deadline, you will not get these things back as they go to the auction.