The payment of a balance and a debt write-up consists essentially of obtaining a discount on the amount due by paying the agreed sum immediately to the creditor in a single payment.
Who can get a balance and excerpt?
The out-of-court settlement, in full and in writing, of the debt, is an amicable agreement in which the creditor accepts to sum lower than the amount of the claimed claim and at the end of the same. Access to the procedure is not precluded to anyone but obtaining the agreement depends on a series of conditions, first and foremost the willingness of the creditor, a bank for example, to want to renounce the forced recovery actions saving the burden of the costs of the procedures and the lengthening of the times. The consumer who finds himself, therefore, in conditions of economic difficulty, could find, in the balance and excerpt, an excellent way out freeing himself from commitment and restoring his position.
How much is a balance and excerpt?
Since an agreement betweenthe parties does not exist a fixed rule, it is not possible to define the discount percentage a priori nor, even less, it is possible to establish a cost for the procedure. The variables at stake are many, from the debtor’s assets to the value of the borrowing or the type of credit.
When to request it and how to manage it
Whenever a debtor is in a state of insolvency, through the assistance of specialists in debt restructuring, I can start a negotiation with the creditor institution to reach a debt settlement transaction. The state of insolvency, for example due to unpaid overdue installments, to a request for repayment of the loan not honored, to a formal notice due to forfeiture of the benefit of the term, a series of problems for the debtor including the reporting of bad credit information systems (SIC-Credit Information System, perhaps the best known CRIF) thus compromising its ability to access credit. The advantage of obtaining a debt settlement transaction is therefore evident, but only if appropriately assisted by banking experts in order to obtain a release with a debt forgiveness statement,