Most common questions used to investigate
Did you enter into the debt contract with a collateral?
Do you have properties such as a car or a house?
Did you already pay part of the outstanding debt?
Did the creditor already transfer the debt to a collection agent?
Common conclusions
The Bank may seize the property you used as a collateral to have the loan approved. It is not uncommon for many creditors to ask for a guaranty in the form of a collateral because most debtors fail to pay their debts. If you fail to pay your debt, they may seize your property as payment for the debt.
Your failure to pay your debt gives the creditor the right to seize your car or house or any money you may have in the bank. These are called seizure proceedings and may be done unilaterally especially if you signed a strict debt contract with the bank.
Your partial payments may trigger an amnesty agreement with the bank. Discuss the possibility of refinancing the loan or reorganizing it so you can pay off the loan in an amount that you can financially shoulder.
You have to deal with the collection agent. While most countries have laws in place to prevent collection agents to harass debtors, they still have their ways to make you pay up. Some even incite fear not just on your person but your family as well. Discuss the loan with the collection agent and create a scheme where you can pay off that debt.
Contact the bank. Admit your fault and discuss possible solutions. Some people may advice you that it is not possible to go to jail for a debt but outstanding debts will hurt your reputation, your credit score, and even your inner peace. Create an agreement where you can discuss the possibility of paying the debt without too much burden on you.
References
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