Often, we can meet with the opinion that the payday loan connects two people more durable than marriage. Indeed, it happens that we get a divorce easier and faster than settling all matters related to credit taken by a couple. What do we need to remember when we want to divorce and at the same time we have a common payday loan?
Dissenting spouses can either divide their property themselves or voluntarily, or they can rely on a court order if they can not agree. However, this division applies not only to the property itself, but also to debts and liabilities incurred jointly. When the spouses have taken a housing payday loan or a cash payday loan together, they will also have to “share” with this debt.
Basically, the very fact of divorce is irrelevant for a bank or a non-bank company. The previously concluded contract still applies in the same form as before the divorce. Therefore, the spouses still remain joint and several debtors of a bank or a non-bank company. Accordingly, the lender may be jointly and severally liable to demand that the debt is repaid. However, it is also possible to divide a payday loan or a payday loan under certain conditions, as it may happen that one of the debtors will not pay its part of the obligation firmly.
Conclusion of an agreement with taking over a payday loan
A liability resulting from a payday loan or a payday loan may be taken over by one of the spouses. Then it is necessary to sign an appropriate agreement, under which he takes over the debt. Such an agreement can only take place if both spouses and the bank agree. When the bank agrees, an annex to the payday loan agreement is drawn up. Of course, the question of property ownership still remains – here we must also agree, for example, to pay off the other spouse.
It is also worth pointing out that a bank or a payday loan company can re-examine creditworthiness at that time . When it turns out that the spouse who wants to take out a payday loan or payday loan does not have sufficient capacity, the bank may refuse to transfer the obligation to it.
Sale of real estate and payday loan repayment
Another option when it comes to a mortgage is the sale of real estate. Then the money obtained from the sale can be used to repay the debt. Unfortunately, in such a situation, it may turn out that the value of the property has fallen, so the sale itself will not be enough to pay the debt in full. Then you will have to pay extra.
What if the other party does not pay the payday loan?
However, when the above situation does not occur and one of the spouses who is obliged to repay his part of the payday loan or payday loan fails to fulfill his obligations, then a problem arises. In this situation, the bank calls for repayment of the payday loan. If one of the spouses does not pay off part of the installments, then the bank may refer the case to court, and then it may go to the bailiff.