I Have Debt to Banks, I Can’t Pay What Happens?
Debts are a difficult situation that many people face. When you cannot pay your debts to banks, you may encounter various problems and legal processes. So, what should you do in this case? Here are the possibilities and solutions that individuals who owe money to banks may encounter:
1. First Delay
Reminder: In the first delay, banks usually inform the debtor with a reminder message or phone call. This process is important for the debtor to realize the situation.
Example: When an individual is one month late on his credit card debt of 2,000 TL, his bank sends him a reminder message.
2. Second and Third Delays
Increasing Interest and Expenses: When the debt is not paid, late payment interests and additional expenses are added. This causes the debt to increase.
Example: The debt of an individual who cannot pay his credit card debt of 2,000 TL for two months may increase to 2,200 TL, including late payment interests.
3. Enforcement Proceedings Process
Initiating Legal Process: If the debt is not paid, the bank may initiate enforcement proceedings. In this case, the bank applies to the court and requests the collection of the debt.
Example: The bank initiates enforcement proceedings for a 5,000 TL credit debt that has not been paid for three months and applies to the enforcement court.
4. Seizure Practices
Seizure of Assets: During the enforcement proceedings, enforcement officers may seize the debtor’s assets. This means seizing the debtor’s bank accounts or real estate.
Example: The bank account of an individual who does not pay a 10,000 TL debt may be seized. In this case, the money in the account can automatically be used to pay the debt.
5. Effects on Credit Score
Low Credit Score: Failure to pay debts negatively affects the credit score. This makes it difficult to obtain new credit in the future.
Example: An individual with a credit score of 700 may have their score reduced to 400 due to unpaid debts. This situation has negative consequences for new loan applications.
6. Restructuring Options
Debt Restructuring: You can contact banks for debts that you cannot pay and request to restructure your debt. This can be an opportunity to reduce your installments or extend the terms.
Example: An individual with a debt of 15,000 TL can contact their bank and request restructuring to pay their debt with a 24-month term and lower monthly installments.
7. Getting Expert Help
Legal Support: If you are having difficulty paying your debt, it may be useful to get help from a lawyer or financial advisor. It is important to get professional support to learn your rights and possible solutions.
Example: The debtor can develop a strategy to understand the legal processes and object to the enforcement proceedings by contacting a lawyer.
8. Debt Termination Process
Statute of Limitations: According to the legal system in Turkey, some debts may be subject to a statute of limitations. This period is usually 10 years. However, this period stops when enforcement proceedings are initiated.
Example: If the statute of limitations expires for a debt that has not been paid for 5 years, the debtor may claim that his debt has been legally terminated.
