Failure to pay debt or loan –due date lapses

[Starmix]

If the debt remains unpaid after the due date has lapsed, the money lender could consider the following:

• Civil action;
• Negotiation and mediation;
• Statute of limitations, and
• Evidence.

The lender can pursue a civil case against the debtor to recover the debt. This is the most common route in such situations. The lender would need to present evidence of the debt, like a loan agreement, promissory note, and others, to the court. Before or instead of pursuing legal action, the lender and the debtor could try to negotiate a payment plan or seek mediation. This might involve agreeing on a reduced amount or a schedule of payments that the debtor can manage.

There is a legal time within which a lawsuit must be filed to recover a debt. The length of this period varies depending on the jurisdiction and the type of debt. After the statute of limitations expires, the lender may lose the right to sue for the debt. If the lender suspects that the debtor obtained the loan through fraudulent means, they might consider reporting it to law enforcement. However, as mentioned before, proving fraud requires more than just non-payment.

 

[Tobi]

First of all gather your courage. No situation s impossible permanently. Have you worked out all possible ways of paying the loan? It may be possible that the collectors are aggressively chasing you and you are afraid - fear not since they cannot adopt illegal ways such as physical force etc (some collectors imply that when talking) - you can always take the help of Police/ Law if the need arises.

 

[Starmix]

Debtors who fail to pay their debts and due dates lapse, they expect legal sanction from the lender. It's better for them to appeal to the lender to give extension and consideration.

 

[oliver991]

Best move is to negotiate before it hits court. Once lawyers and judgments get involved, costs stack up and your options shrink fast.

 

[Starmix]

A debtor must be responsible to pay the money he owes from the lender . If fails to pay as per agreement, the contract serves as proof for his failures. He can't escape punishment. A sheriff is always ready to act as per order by the court. It's better to appeal to the lender before something worse happen.

 

[Augusta]

It is good to always only borrow money you can pay back. You don't want issues and problems. So just be sure you are doing right here

 

[Starmix]

Firstly, the debtor must assess his source of income if qualified to pay for the loan until it's fully paid to avoid disparity of faulted to pay. It's better to borrow money to the relatives than in a bank or lending firm.

 

[Suba]

The best way to resolve a loan case that hasn't been paid according to the agreement is to negotiate first. Before taking it to court, we, as the lender, must also consider the size of the loan. If the debt is small but we take it to civil court, we will spend more money on lawyers.

 

[Starmix]

Indeed if the debt is small there's no need to bring to court. The debtor can refer the case to the barangay court headed by the head of the barangay or town where the case happens.

 

[eLdavis]

What about a situation where the money was borrowed from an online platform, can negotiation still take place?

 

[Starmix]

What about a situation where the money was borrowed from an online platform, can negotiation still take place?

I believe it could be negotiated if the debtor is honest and must have word of honor. It's crucial if tell lies to the lender. It's unfair on his part if the money borrowed is considered thank you payment.