Negotiate with creditors
We present you 3 solutions that each must be considered chronologically. The first, probably the most economical, is to attempt a creditor negotiation by the creditor .
Establish a viable repayment plan
Start by building a repayment plan over a “reasonable” period that allows both to spread out the debts sufficiently and to satisfy your creditor.
Our advice : avoid proposing a too long staggering that would have the effect of discouraging your creditor or too short because it would not allow an effective discharge of your debts.
As you can see, one of the keys to successful negotiation lies in the balance of the proposal.
Another important point is to submit the plan in writing to each creditor to demonstrate the seriousness of your approach.
Know how to negotiate with the administration
If among your creditors are the Treasury, the Urssaf or any administration, know that the latter accept quite easily to spread a debt when the demand comes from a household in real difficulty . Submit your request in writing, giving full details of your situation in your letter and attaching your debt remediation program.
Situation of overindebtedness
If all your attempts to spread amicably have failed, then you have no choice but to turn to an over-indebtedness solution.
How to mount a folder?
The ideal is to make an appointment with an adviser of the Bank of France and to ask him for advice. You can also contact the services of the town hall of your home who can give you the address of the social worker in your area.
The second step consists of mounting an over-indebtedness file and does not pose any particular problem. Simply request an over-indebtedness file from the nearest Banque de France branch or download it directly from the website.
Once the file is completed, return it in writing , accompanied by a letter detailing your situation. The over-indebtedness commission will rule on the admissibility of your application and will keep you informed. Do not expect to be answered quickly. It is not uncommon for deadlines to exceed two or three months.
Admissibility of the application
If the board finds your application admissible, it will contact your creditors and try to get them to accept various measures to defer or spread your debts . In the event of failure, it may also impose on both parties a repayment plan.
For the most problematic cases, the board has the option of requesting a personal recovery procedure and asking the over-indebted household to sell their assets (except what is necessary) to help pay the debts.
The solution of buying back its loans is a relatively cumbersome operation which entails an additional cost of the credits bought back. That is why it should be considered as a last resort and with the greatest attention.
The impact of the redemption of credits
The operation itself does not present any particular difficulties. This is for the new lender to grant you a new loan that covers the outstanding principal of all outstanding loans (consumption, real estate, money reserves …) for a period long enough for the new monthly payment is less than one third of your income (less than 33% of indebtedness).
If the spread of your debts allows you to better manage your budget, it will cause a significant increase in the cost of each restructured loan.