Administered by the Francia bank, the over-indebtedness commissions aim at establishing solutions to help households who can no longer deal with their debts. The Credit Guide returns to how to enter commissions.
When to enter the commission?
In the first place, repayment difficulties do not necessarily mean that a household is over-indebted. It can be temporary difficulties. It may be possible to lower your debt ratio by redeeming credit.
On the other hand, if payment incidents or unpaid invoices multiply and you are unable to reach an agreement with your creditors or reduce your expenses, you are then faced with a situation of over-indebtedness. The only solution is to file an over-indebtedness file.
What conditions are required to file a file?
Only individuals can appeal to overindebtedness commissions. These concern only non-professional debts (that is, debts that are not related to a professional activity) related to French creditors.
Moreover, households must be in “the manifest incapacity to face debts” past or future (deadlines of mortgage or consumption loan, delays of taxes…) while being of “good faith”. Understand: households must make a sincere declaration and not have provoked voluntary overindebtedness.
Important: the filing of an over-indebtedness file involves registration with the FICP (Credit Reimbursement Incident File), a file listing incidents of repayment of loans granted to individuals.
What is the procedure after filing the file?
After receiving your file, the commissions will study your request before proposing a solution. In case of acceptance, they will, initially, estimate your current expenses, then set up a recovery plan. The proposed measures may take the form:
a rescheduling or postponement of one or more debts;
a reduction in the total sums due to the creditors;
a suspension of the proceedings initiated (for example, a seizure of property);
the erasure of your debts.
For its part, households undertake to repay their debts (by selling their property for example) and not to take out new loans, and therefore not to aggravate their debt.
If the recovery plan is ineffective, a personal recovery process may be initiated. It consists of liquidating all of your assets and then clearing your debts.
The credit buyback, kezako?
We mentioned above the redemption of credit. This operation makes it possible to group all or part of its credits in a single loan. The advantage? By paying only one monthly payment, your debt decreases, you find a certain budget capacity every month, and you can save again or invest in a new project.
All types of loans can be grouped in the operation: consumer loans (revolving credit, personal loan, car loan…) and mortgages. The transaction also includes tax debts and bank overdrafts.