The borrower cannot borrow money, yet the latest consumer credit law can be cited. Protection from a debt trap is important, with no exceptions. You have to prove your lasting income with your last quarter’s account statement, so the lender protects you from a situation where repayment would be a problem from the very beginning.
You cannot borrow money in insolvency
From now on, not only banks but also non-banking companies will not lend to all interested parties. This is understandable in the end, because there are a lot of cases where the debtor got into the insidious debts of a debt trap from which he got out for a long time. First, it is necessary to pay off the debts, whether it is a distrainment proceeding or insolvency, only then you can arrange a loan. And of course, the unemployed are forbidden, the same applies to mothers on maternity leave, respectively single parents. Their income is not enough to repay the loan .
What do you need for a loan? There is a minimum in every case
You need to fill out a short loan application. This provides basic information about the applicant, which is legally necessary for something similar. What is it all about?
- Name and surname, as well as ID card scan. The identification is now complete.
- Account statement for the last three months. Just prove that you make money.
- Debtlessness. If you have an outstanding liability from past or are in insolvency, the loan will not.
An insolvency loan or a distraint loan may have been commonplace in the past, but thanks to the new Czech legal order – and ultimately our Code – no one will be allowed. The debt trap here is almost certain, and if someone is insolvent, they simply have to learn to live a little more modestly. It will not be for a long time, the insolvency process lasts a maximum of several years.
When you borrow money, think carefully before going ahead
The loan, whether it is only a thousand dollars, has its fixed rules. You should therefore clarify exactly what you are borrowing for and if it is not a problem to keep the payment schedule literally to the exact spot. Therefore, before you apply for a loan, call your family council or take a pen and paper, write down the reasons why you need the loan and think. In principle, there is nothing worse than a loan that you have negotiated without the slightest thought and which you want to solve rather banality.