In a difficult financial situation, many people seek to turn to consumer credit. Practical, it allows – in theory-, to reimburse your most urgent debts. But can you get credit in the event of a lawsuit, and what are the alternatives in case of debt? We offer some explanations.
Credit with lawsuits: what does Swiss law say?
The Swiss LCC (Consumer Credit Law, see (the text in question) does not directly stipulate that credit with lawsuits is prohibited, however, “Consumers are deemed to have the capacity to take out credit when they can repay this credit without encumbering the elusive part of his income referred to in article 93, paragraph 1, of the federal law of April 11, 1889 on debt collection and bankruptcy “(LCC art. 28). current inability to repay previous debts, it follows that the consumer with lawsuits will not, within the meaning of the law, the capacity to repay a credit. For this reason banks systematically refuse to grant credits with lawsuits While obtaining credit to settle debts can be a solution in certain very specific cases, it will always be advisable to settle your lawsuits before making a request.
And the repurchase of credit?
The repurchase of credit consists in regrouping all its debts (invoices of credits, leasings, balance of credit cards mainly) under only one personal credit. This financial solution is interesting in that it allows on the one hand to reschedule its repayment over a longer period, and on the other hand to benefit from a reduced interest rate. Thus, the consumer replaces several invoices with a single clearly reduced monthly payment. However, the repurchase of credit remains, within the meaning of the law, a consumer credit. A credit repurchase with lawsuits will therefore also not be accepted by banks.
What alternatives to credit in the event of lawsuits?
The best alternative is through the services of a debt reduction company that will offer help in the event of debts. Concretely, such companies offer the following services:
- An analysis of the consumerer’s budget and the state of his debts.
- Assumption of debts (always paid by the consumer), but above all the negotiation of these with creditors. It will thus be possible to obtain rate reductions and deferred payments, see amicable solutions.
- Monitoring the situation until financial consolidation.
Who to turn to?
If you have lawsuits, acts of default of goods, or have been refused during your credit applications and you are looking for a solution, the best is to turn to a specialist. Our partner multicredit.ch offers both credits and debt reduction solutions in the event of lawsuits, for example, and can offer you a free appointment with a specialist who will take stock of your situation and offer you, without obligation, concrete solutions to lead you towards a life without debts.