First comes the order for payment, followed by the order for enforcement. Debtors should therefore always open the mail that comes from the court, because a claim cannot be valid. What is an enforcement order? If an invoice is outstanding, the creditor sends the debtor an out-of-court reminder. Usually a debtor responds and pays the bill. If you cannot pay, you should contact the creditor and clarify the matter. If you now need a loan, you will find when applying for a loan that the enforcement order is entered as a negative example in your Credit Bureau. As a result, a loan is refused despite an enforcement order.
The loan despite the enforcement order – the prospects
An enforcement order comes from the local court or another enforcement agency such as the tax office. An enforcement order does not arise for any vain reason, but there are payment problems with banks, landlords, mail order companies or telephone companies. First comes the order for payment, then the enforcement order if the loan seeker has not responded to the order for payment.
Even if the enforcement order has been issued, the debtor still has the opportunity to file an objection within 14 days. If the debtor also lets this period pass, there is nothing more he can do than pay the debt. If he does not do so, an arrest warrant can be issued or it will be enforced. The loan seeker should know that the bailiff can now force the debtor to take an affidavit. Creditors can enforce for another 30 years.
If the loan seeker does regular work, his wages are seized up to the exemption limit. The exemption limit is based on the marital status and any existing children. It has often happened that a garnishment did not work because the debtor’s income is below the garnishment exemption limit. As mentioned before, the bailiff or the creditor can then demand an oath of disclosure.
To do this, the debtor must disclose all of his assets. A loan in spite of an enforcement order thus seems to be hopeless. But what can the customer do?
The loan from abroad – an option?
Foreign banks from abroad can often help, especially in difficult cases. The Credit Bureau-free loans that come from abroad and for which Credit Bureau does not play a role, are also out of the question. The requirements of these banks state that Credit Bureau is left out, but the public debt register is inspected. To what extent the Infrabank has access to the public debt register should be asked. To do this, the customer can contact the bank on the Internet.
There, the bank will then see that a serious negative feature is an enforcement order. This is an absolute credit exclusion also for the foreign loan. Although the loan only grants two small loans despite an enforcement order from a foreign bank. The income must show an attachable share, so a single person must earn 1,600 USD net so that he receives a small loan of 3,500 USD.
In addition, the loan seeker must provide evidence of a permanent job that has existed for at least one year. The employment contract may not be limited in time and may not include a trial period. Temporary employment contracts are also a reason for exclusion at these banks. Unemployed or self-employed are excluded from this loan despite the enforcement order.
The unemployed receive state benefits that cannot be seized and the self-employed have no stable income. To do this, the customer must be of legal age and reside in Germany. If you want a loan from abroad despite an enforcement order, you must be at least 18 years old and not older than 58 years.
The bank comes from Liechtenstein and is called Litebank. The extent to which this bank grants a loan in the event of an enforcement order should be asked whether it has any insight into the public debt register. The customer can contact the bank on the Internet.
The loan despite the enforcement order – debt restructuring?
A loan in spite of an enforcement order is a difficult matter. Especially since the creditor can collect his claims for 30 years. If a loan is necessary in these circumstances, the loan seeker should ask himself. He cannot hide this fact, since banks, telephone companies, landlords, everywhere the partners who work with the Credit Bureau, query the Credit Bureau, where the enforcement order is kept as a hard feature.
Debt restructuring, which is often the lifeline in such cases, is also difficult to obtain. Debt restructuring also has to be approved by a bank. This would require a conversation with the bank, from which it can be seen that the customer does not want to incur new debts, but rather wants to combine all of his liabilities into one loan. Of course, this also means that the outstanding liabilities that led to the enforcement order are settled.
The customer only knows whether a bank has declared itself ready when it asks.
However, the possibility of paying the installment to the creditor remains open. No creditor will oppose this because he wants his money back. Even if an agreement has been reached with the creditor, there is no credit. The reason, the hard negative entry remains visible in the Credit Bureau.
If the debtor has now paid off his debts, the Credit Bureau only makes a note as done, the entry remains visible for three years. To what extent a bank agrees to this remains to be seen. It will be an arduous task and it can also be dangerous. Because in financial need, many loan seekers accept a loan offer, even if it would normally be unacceptable.
The loan, despite the enforcement order, is often offered by dubious credit intermediaries. You promise a loan and ask for advance payment or preliminary costs. Sometimes a home visit is made to urge customers to take out an insurance contract, which increases the chances of getting a loan. There are other fraudulent procedures, such as calling expensive hotlines, where the customer should then receive important information about their credit despite the enforcement order.
He will receive nothing because he will be connected from device to device in order to hear “nothing” at the end. The result is a hefty phone bill and an insurance contract that he doesn’t need.
Perhaps there is a real chance in mail order. If the customer is an existing customer there and has always paid the installments on time, the customer could at least order consumer goods such as a washing machine or a stove there. However, it ends at 1000 USD, because then the mail order company will also query Credit Bureau.
In general, despite the enforcement notice, there is to be considered that there are basically no funds available to service a loan. The other way to order from a mail order company is to order through a good friend. But then you should be so fair and pay the installments to your boyfriend or girlfriend.