Credit: who should pay the debts in the event of a divorce?

The life of a couple is a priori a matter of the heart but it is also, whether we like it or not, a matter of money. And the financial question can turn into a nightmare at the time of the breakup. But what does the law say when there are credits to be reimbursed?

Subtle settlement of accounts between spouses

Subtle settlement of accounts between spouses

If the spouses have the vocation to share the possible enrichment (real estate, savings) which may arise from their union, they must also share the debts. Whatever the matrimonial regime, they are solitary, that is to say co-responsible, of these so-called household debts, even if they have been incurred by only one of the spouses. These are ordinary everyday expenses, including food, water bills, electricity, rent, and family housing costs, children’s health costs.

However, if the expenses are manifestly excessive in relation to the couple’s lifestyle, the usefulness or uselessness of the operation, the good or bad faith of the third party contracting party, the solidarity of the spouses does not play, explains the article 220 of the civil code. Ditto for credit purchases and loans, except if they relate to coherent sums taking into account the standard of living of the household and that the expenses thus carried out are necessary for the needs of the everyday.

In other words, if you buy with a consumer credit a stove or a washing machine, your spouse is liable for the repayment of the installments, even without having the quality of the co-borrower. It is logical, these are modest sums necessary for the needs of everyday life. Conversely, if you take out a car loan to finance the high-end car of your dreams, you will not be able to ask your spouse to share the bill for the repayment of the installments. Unless he has the quality of co-borrower or is surety to guarantee your loan.

The result, when a spouse takes a loan alone which is not necessary for the needs of everyday life, he commits only his own property and his income.

Exception to solidarity

Exception to solidarity

Since the Elan law of 2018, solidarity ceases to apply to rents and charges when the spouse, notorious partner or cohabiting partner, leaves the family home due to violence exerted within the couple or on a child. The only condition: inform the lessor by registered letter, with acknowledgment of receipt, accompanied by a copy of the protection order issued by the family judge.

Limits to the protection of an economical spouse

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The rules of article 220 of the civil code aim to protect the virtuous spouse from the behavior of his over-spending spouse. However, this protection is less absolute than it seems. At issue: the legal community.

Married spouses, without having signed a marriage contract before a notary, are subject to the regime of the legal community, which is the case for the great majority of couples. This plan includes all the elements of heritage acquired for valuable consideration after the date of the marriage: car, housing, furnishings, household appliances, wages, savings …

So much for the positive side of the legal community: everything that was acquired during the marriage belongs equally to both spouses and must be split in two at the time of the divorce. Everyone keeps for themselves, on the other hand, the property acquired before the date of marriage as well as that collected during the conjugal life by gift, gift-sharing, inheritance, inheritance …

According to the civil code, the legal community is composed actively and passively. This means that it includes the assets acquired during the marriage (except inheritance and gifts) and the liabilities, i.e. all debts for which the spouses, or only one of them, are indebted.

The result, the household debts, mentioned above, and more generally all of the credits in the process of being reimbursed are included in this common pot. At the time of the divorce, these debts which you may not have always been aware of are therefore charged to the assets of the community.

35,000 dollars credit for self-employed – from 304 dollar rate

Most money houses advertise their products with favorable conditions and a simple application. However, a 35,000 dollar loan for self-employed is not on the billboards.

If you need a loan for self-employed persons of 35,000 USD, you have to provide a large amount of evidence to prove your creditworthiness. Nevertheless, a credit comparison should be made.

How can the examples be interpreted?

How can the examples be interpreted?

Using these few examples, it becomes clear how the interest rate and the term affect the credit rate. If you want a cheap 35000 dollar loan for the self-employed, you should make a loan comparison. The credit comparison from Smava provides all important details about the loan for self-employed 35,000 USD. It is also free and non-binding.

The self-employed must expect a higher interest rate than employees. The interest rate can be lowered with loan collateral. With the 35,000 dollar loan for the self-employed, it is important that free repayments are possible. If the business is going very well and the income is excellent, the loan could be redeemed early. If no special repayments have been agreed, this may result in costs.

As for the term, a long term brings lower credit rates, but the interest rate increases. With a short term, the credit rate increases, but the interest rate drops.

Which loan documents are necessary?

Which loan documents are necessary?

Employees, clerks and civil servants only need salary slips from the past three months to prove their creditworthiness. Sometimes bank statements are also requested. In the case of a 35,000 dollar loan for the self-employed, documents from the past two years must be presented. Entrepreneurs have to provide exact information about earnings based on business evaluations (BWA), profit and loss accounts and often an income tax assessment. The information must be several months ago.

Increase credit opportunities!

Increase credit opportunities!

In order for a loan of 35,000 USD to be granted to the self-employed, banks often require so-called bank collateral. This can be real estate, life insurance or time deposits. Banks like to see it if a 5000 dollar loan for the self-employed is secured with a guarantor or a second borrower (spouse?).

Both people must be solvent. They must also be informed of what happens if there is a loan default. Then these people are liable for the loan. Therefore, the income must be high and secure. Another possibility is that another person takes the 35,000 dollar loan for the self-employed in his name.

If this person has a secure income, good conditions are granted. The loan amount can then be passed on to the self-employed. Of course, everything should be recorded in the contract. The self-employed person’s income must also be high enough that the loan installments can be paid.

Bad credit checker – no money?

Bad credit checker - no money?

Like other borrowers, the self-employed will only receive a self-employed loan of 35,000 USD if the credit checker is clean. The entries are defined by characteristics and soft and hard. If you have a soft characteristic, for example because loan installments have not been paid and the bank has made the loan due, you could still get a 35,000 dollar loan for the self-employed from a suitable provider.

With a hard characteristic, however, there is no longer any credit. An affidavit, seizure or bankruptcy is considered a hard characteristic. A bad credit checker does not have to be the end of all loans. The Internet and the media are full of credit checker-free loans.

However, a secure income is important as a prerequisite for these loans. If loan collateral can be provided, a credit checker-free loan could also work.

Loan for self-employed 35,000 USD – the cost

Loan for self-employed 35,000 USD - the cost

How high the interest rate and the borrowing costs depend on the respective provider. Not only that, the interest rate also depends on the customer’s credit rating. So there are funders who give a 35,000 dollar loan for the self-employed drastically. Others have conditions as for an employee.

Therefore, it should be important to do a loan comparison. The credit comparison from Smava provides all important details about the loan for self-employed 35,000 USD.

Debt in spite of negative Credit bureau

Would you like to reschedule debt and make a fresh start despite a negative Credit bureau? We have summarized information on credit options that make debt restructuring possible despite a negative Credit bureau.

Debt in spite of negative Credit bureau – extent of debt restructuring

Debt in spite of negative Credit bureau - extent of debt restructuring

Debt in spite of negative Credit bureau can be planned on a large scale or only on a small scale. The idea of ‚Äč‚Äčeliminating a small old residual debt often arises when precisely this debt has caused the negative Credit bureau entry. Much can be achieved if the debt can be balanced and noted as done. Three years later, the Credit bureau will finally be clean again.

If the Credit bureau entry is not completed, the choice of loan is clear from the start. It is a loan without Credit bureau, only a foreign bank can grant the loan without Credit bureau. We are looking for the advertising of such a credit bank. However, the advertising of a credit broker who promises to find a Swiss loan without Credit bureau for debt restructuring is found practically without exception. If you would like to save yourself the placement fee, you can submit your loan application directly. As far as is known, there is only one foreign bank that approves legally Credit bureaufree loans to Germans, the choice of provider is easy.

Since 2010, Cream bank from Liechtenstein has been offering a legal loan option for Credit bureau-free loans. Such a loan can be applied for through a reputable credit broker or directly from the provider. As with all credit options with poor credit ratings, securing financing plays an important role. In the case of a Liechtenstein loan, only the labor income is looked at. Guarantors or real assets cannot improve creditworthiness.

Debt with a Credit bureau-free loan

Debt with a Credit bureau-free loan

Debt rescheduling despite a negative Credit bureau with a Liechtenstein loan is only possible for two loan amounts. The loan offer without Credit bureau is limited to USD 3,500 net loan and USD 5,000 net loan amount. Only one loan per applicant is possible. In principle, only employees in dependent employment are qualified for a Credit bureau-free loan. The employment contract must not be limited or terminated and must also have existed for at least one year. Marital status and loan amount play a role in the required income level.

For a credit of 3,500 USD, a single person must prove a net work income of at least 1,130 USD. For a loan of 5,000 USD, it is already 1,600 USD. Both loan amounts are only ever granted in connection with a fixed term of 40 repayment months. Nevertheless, there is the possibility of early loan repayment, but also the credit increase to the original amount. The effective annual interest rates mentioned below always refer to the direct application.

If a debt in the amount of $ 3,500 is to be rescheduled, an effective annual interest rate of 11.62 percent will be charged. The interest rate includes the processing costs and the debit interest. External costs cannot be recorded. Third-party costs can arise through a credit broker, the cash payment, postage costs and the costs for the certification of the transfer of income. Under the same conditions, the annual percentage rate for a loan of 5,000 USD is 11.61 percent.

Debt in spite of Credit bureau – domestic financing

Debt in spite of Credit bureau - domestic financing

A comprehensive debt restructuring, the merging of various liabilities, is usually not possible via a foreign loan. The loan amounts offered are simply too small for this. Rescheduling despite a negative Credit bureau is possible, even with a larger loan volume, via a domestic loan. However, the negative Credit bureau entry must be marked as done. Two financing options are available for debt rescheduling. A bank loan or a private loan would be possible.

If debt restructuring is not possible despite a negative Credit bureau through private donors, then the only option left is to try a loan from a specialist provider. Credit brokers know various credit banks that also allow a loan despite Credit bureau. The extra loan from Agree bank is particularly recommended for debt rescheduling. Again, the credit attempt can be made directly or through an intermediary.

The flexibility of an extra loan for debt restructuring is particularly appealing. Interest rates, however, are very sobering. Debt in spite of negative Credit bureau costs with the extra loan, regardless of the amount and term, 11.95 percent APR. Only a calculator or debt counseling can answer whether a debt restructuring still pays off.