The debt overhang is the inability of a person to pay debts within the deadlines and terms agreed, situation that concur when the amount of your income is lower than the periodic payments and expenses necessary for their survival. This circumstance has affected individuals and to the environment of families, being the main cause why lha increased cases of insolvency and bankruptcy. The origin of the debt overhang is: 1.-excessive indebtedness contracted in the past six years. 2 Increase in the price of housing in this period. 3.
Growth of the interest rates in the last year and a half. 4. Excessive credit for consumption and high interest rates in the contracted operations. 5. Family crisis and the cost increase, almost in the double, in cases of separation and divorcio.6.-the severe real estate, and financial crisis dragging physical people to a situation of insolvency and inability to pay its obligations. Attending to the causes that provoke it, we can (distinguish two types of over-indebtedness, namely: to) active over-indebtedness: its origin is in the abuse of consumption, facilitated by the money from the credit tarejtas, discovered in checking accounts, interest rates regular or remunerative of between 12-15% and 29% delay interest, etc.
(B) passive over-indebtedness: its origin lies in the impossibility to occurrence of the payment of recurring obligations, due to a little foreseeable subsequent change of circumstances and economic conditions of the family (unemployment, growth excessive interest rates, inflation, housing prices). Aside from the bankruptcy law, only 50/1965 Act 17 of Julio Ley hire purchase of movable property, envisaged the possibility, in exceptional cases and by appreciated just causes discretionarily (family misfortune, accident at work) to the judges and courts point out new deadlines and moderate penal clauses agreed. The implementation of the bankruptcy law to natural persons has improved treatment for the Active insolvency (consumption, game, etc.) In case of being in the latter case, should apply article 2 LC, for the common debtor or person. Your debts will be loans, credits, overdrafts in mind, ordinary credits with accrual of interest for which the simple declaration of insolvency, suspends the accrual of interest, according to article 59 LC. Those involved will negotiate an agreement with take away and waiting, adjusted to the real possibilities of the debtor. In subsequent liabilities in good faith there is a creditor with a mortgage guarantee on the homestead that will not negotiate or accept removes or waiting until not run warranty. Except that adoption of a Convention, removes, in liquidation there debt forgiveness. If you are thinking of join the bankruptcy law to declare a competition of creditors of physical person, married, unmarried or divorced, you and your attorney should have the conviction that this is the only alternative and solution to your problem after examining the cost economic, moral and psychological for this and especially analyze objective pursued thereby. The competition of creditors of person if more important or almost sole credit is mortgage, because the cost will be very high for any advantage may not occur. In this case what is reasonable is to negotiate with the creditor, extrajudicially, an alternative to foreclosure. The negotiation based on the reconciliation of interests, permitting a transaction agreement, procedurally more economic and equally effective if both parties adhere to the signed. If you are insolvent with one or more creditors and need a mediator request a quote here source consulted.: Fco. Javier Orduna Moreno.