Any debtor should be aware that, in the case of unattended or insufficient repayment of debt, his obligation is increased. The obligation is formed by principal, interest, and expenses, which are extinguished in the following order – expenses, interest, principal.
Interest depending on the stage of development of the obligation – may be contractual, punishable, moratory or legal. Information about the legal interest and the order for the calculation and you can find on the site.
The expenses are related to court fees for removal of a writ of execution or claim proceedings, fees for the formation of enforcement proceedings and any subsequent fees related to attachment, foreclosures and other acts performed by the еenforcement agent in the recovery of the debt. The expenses include legal fees accrued/paid related to the collection of the specific obligation.
In order to avoid the court procedure that will burden the debtor with costs that may sometimes be exceeded over the amount of the debt, we strongly recommend that the debtor contact a representative of the creditor and agree on the repayment of the debt, without going to court and enforcement cases.
Finding the balance between the interests of the creditor and the debtor and choosing the option to repay the debt, achievable for the debtor and satisfying the requirements for the duration and amount of the repayments is equally beneficial for both parties. The debtor on voluntary payment will not be charged with fees and expenses related to the costs of enforcement agents, and it is possible to negotiate annuity contributions at a specific interest rate, covering part of the interest and principal. Purpose for Finance Info Assistance Ltd is settling the obligations by extrajudicial order, in its practice it has concluded over 150 notarized agreements with debtors and many more voluntary agreements. Thus, the debtor and the creditor have achieved an optimum guarantee for fulfilling the obligations of both parties.
Information about the amounts of sample debt collection costs, the method of setting the fees and the calculation of the statutory interest can be found on the website