ANYTHING TO DISSOLVE LOANS

The number of people losing their jobs is growing. Salaries are not increasing in the way employees were used to and which they were depending on to pay off loans. Many debtors were trying to pay off their loans by getting another. This at least helped them to postpone the problem. Bankers or moneylenders were accepting such clients because they were increasing their figures through new loans. This is changing fast now. Banks don’t want these clients to increase their figures through unpaid loans. Therefore the financiers are now avoiding problematic debtors and making the criteria for receiving a loan stricter. They are also using all accessible sources of information to check clients‘ integrity. For those who already placed very heavy burdens on their shoulders, it’s too late. They are being chased by executors or they are thinking of putting up their companies for tender in order to vanquish debts. They think that this way commitments will be gotten rid of. But if anyone thinks that it’s enough to go bankrupt and debts are gone, they are wrong. We still don’t have much experience with this, but it’s clear that many Slovaks won’t get rid of their debts in this manner. The law has known this method of debt-ridding for three years. So far, nobody has been able to become a debt-free entity via this method. But neither for the ten debtors chosen from a hundred applicants, who were allowed by the court to dissolve their debts, is this a positive outcome. If a physical entity files a proposal for tender on itself, it has several reasons and one goal. The debtor is sinking under loans and other committments and even though he has some properties, it’s not sufficient enough to pay off all debts. Vindicatory interests are piling up and executors are already watching properties or other possessions. I Pg 66