Immediate credit limit for loans.

Establish a general age limit for granting loans.

Establish a general age limit for granting loans.

Maximum amounts for pensioner loans and age limits. ERP Credit Commission also decides on loan amounts that exceed this limit. is granted immediately if the creditworthiness is reasonable and the credit guidelines are adhered to. Unlike other loans, a cap loan differs in that it has a variable interest rate.

A low-value system (GWG) is mobile, susceptible to wear and can be used independently. If a GWG does not cost you more than USD 410 excluding VAT or USD 487.90 VAT, you can claim it as income-related expenses and have the right to deduct immediately from your taxable profits, whether you are an employee or a self-employed person.

From 2018 prices will increase to 800 USD net and 952 USD gross value. If you need the GWG to generate investment income, the total amount must exceed the savings allowance of 801 USD for singles or 1,602 USD for married couples so they can include it in their income tax return. The GWG is a movable, wear-resistant, independently usable asset whose acquisition or production costs do not exceed a certain amount (§ 6 Abs. 2 EStG).

The elimination of the deduction of the actual income-related expenses on the income from the fixed assets was enforced with the introduction of the lump sum and the savings lump sum. Purchases that you use almost exclusively for professional purposes can be deducted directly from your taxable profits up to an amount of USD 410 excluding VAT – up to a total of USD 487.90.

For notifications from 2017, you can wait until requested by the tax office. If your actual earnings-related expenses of the GWG exceed the savings allowance of USD 801 for individuals or USD 1,602 for married persons, you can enter the income-related expenses in a separate list. Unlike self-employed or business owners, it does not matter when you have purchased the corresponding low-value assets.

The amount can be used independently

The amount can be used independently

An investment which can be used independently up to an amount of USD 800 net or USD 952 net (for acquisitions until the end of 2017 the net value of USD 410) can be written off immediately, ie in the year of production or acquisition. It is possible to create a collective item for several independently used assets and to write them off together over five years (so-called pool write-off).

This is possible if the goods cost between 250 USD and 1000 USD (“net”) (until 2017: 150 to 1000 USD). If the real estate value exceeds the limit of 250 USD net (until 2017: GWG over 150 USD), you must enter it for documentation purposes in a register, which can check the tax office.

The pool depreciation is structured in this way: They combine all GRPs with a net value between 250 USD and 1000 USD. The pool depreciation allows a higher value investment to be sold out more quickly. However, he must decide in the USD Annex whether he abuses all profit or loss immediately or consistently. You, as a self-employed person or a merchant, must immediately abort assets with maximum acquisition or production costs of USD 150 if you purchased them between January 1, 2008 and IJ 2009.

For goods with a net value between USD 150.01 and USD 1000, you can create a collective item that you settle over five years. If an asset is removed from the collection item during this period, it must not be reduced. If the cost of an asset acquired before the reporting date of the 2007 annual financial statements does not exceed $ 410 net, you may derecognize it in full in the year of its origination or acquisition.

5 Questions You Should Ask Yourself Before Credit

Loans are a method we use to meet our cash needs. It is divided into types such as housing, vehicle, commercial and need. The type with the highest sunken rate is the consumer loan.

In almost every case, there are many reasons for getting a loan. There are some points that you should pay attention to when applying for general purpose loans in order to avoid any problems in payments. Here are 5 questions and answers to yourself before the loan:

Which Credit Type Should I Apply

Which Credit Type Should I Apply

First of all, we need to choose which type of loan is suitable for us. Banks apply various analysis to the people who request credit and try to offer them the most appropriate maturity options for their income profile. However, the unrecorded incomes in our country are very high and the bank systems cannot analyze the income situation of the people who request credit; It may cause various problems in returning to consumer loans.

For this reason, banks often do not analyze the situation of the people who request credit, and the people who request it do not know how to adjust their payment order. Especially in general purpose loans, unlike other types of loans, collateral cannot be shown mostly; the wreck rate is high.

How Much Credit Can I Pay Monthly?

How Much Credit Can I Pay Monthly?

You should determine how much credit installments you have the ability to pay monthly before applying for a loan. In our country, most banks, with the exception of exceptions; requests that your total monthly loan payment not exceed fifty percent of your income. The rate, accepted by major financial companies worldwide, is at the level of forty percent of your monthly income.

The reason for this rate is the fact that you can meet your basic needs with your income other than credit payments. In our country, this rate has been expanded by some banks due to the high level of informal income. For this reason, experts; Even if banks have given loans with high monthly payments, they recommend that individuals pay monthly up to 40 percent of their regular income. For example,

Every individual who applies and receives a loan wants to finish the loan as soon as possible. However, the point that most people skipped; This is to decrease the budget allocated to our basic needs and social needs as the amount of loan to be paid monthly increases. You may not feel this decrease with the correct maturity method.

After calculating how much budget you can allocate monthly to your basic and social needs; Taking the remaining amount into consideration, determining the maturity of the cat is one of the most correct steps to take. If you think that you will have difficulty in your monthly loan payments; you must extend the maturity. However, you should not overlook that the longest term to be withdrawn for general purpose loans is 36 months.

What Is The Highest Loan Amount I Can Withdraw?

What Is The Highest Loan Amount I Can Withdraw?

The monthly loan amount you calculate multiplied by your maturity; When you add the estimated total interest you will pay, you can find the maximum amount of credit you can withdraw. But it is wrong to say that I can pay and get more credit than you need. Monthly and total payments of each additional amount you receive from the bank also brings with it the additional burden.

On the other hand, if you take less credit than you need; In the future, it causes you to take a second loan as the first loan is not enough. This can cause you to pay both loans at the same time and put you in a difficult situation. The best option is to determine the amount you need clearly and to request credit for the amount you need.

What are the Costs That Can Be Included During the Credit Process?

What are the Costs That Can Be Included During the Credit Process?

Calculation of all costs that you may encounter during the loan process; it is the most difficult one among the calculations we mentioned. To calculate the costs more comfortably; You can divide it into two groups as you can guess and you cannot guess.

The costs you cannot estimate cannot naturally be calculated, but on average you should allocate an additional budget. The expenses that can be estimated and you have to allocate a budget regularly should be included in the expenses for loan purchase. Monthly loan payments should be calculated accordingly.

Credit after consumer bankruptcy – is it possible?

Is it possible to take loan after bankruptcy?

Is it possible to take loan after bankruptcy?

The number of Poles who declare consumer bankruptcy increases every year, and there are many indications that the law will be even milder for debtors. We check why this is happening and whether it is possible to take a loan after bankruptcy.

The growing number of consumer bankruptcies in Poland is the result of the liberalization of the Bankruptcy and Rehabilitation Act of 2014. Meanwhile, the Ministry of Justice announces that the law will be even more lenient for private individuals who are unable to pay their debts, which worries specialists from the financial industry. Analysts are afraid that Poles will loosen their financial discipline even more.

Meanwhile, sound financial management is already difficult for many of us. In a study conducted for the purposes of the Irresponsible Project, 35% of respondents said that they had a problem with settling the debt or that they were in arrears with repayment of some financial liability. A similar percentage of respondents replied that they had happened in debt, not sure if they would have the means to repay this amount. A quarter admitted taking loans for things they didn’t really need.

Consumer bankruptcy – what is that?

Consumer bankruptcy - what is that?

Consumer bankruptcy is a court procedure for natural persons who do not run a business (consumers) who have become insolvent. Insolvency is a condition in which the debtor is unable to perform his due monetary obligations ( Article 11 (1) of the Bankruptcy and Rehabilitation Act ) – for example, there is no money for the simultaneous purchase of daily use and repayment of the loan.

Consumer bankruptcy has two main functions:

  • debt relief for an insolvent consumer – cancellation of all or part of the consumer’s debts in relation to his creditors, which the consumer is neither able to pay;
  • recovery (recovery) of receivables from the insolvent consumer by his creditors.

Filing of a consumer bankruptcy petition

Filing of a consumer bankruptcy petition

Currently, at the stage of filing for bankruptcy, you must prove to the court that we are unable to pay the debts due to random reasons. Loss of ability to pay financial obligations must also be permanent, but it cannot be the result of intentional act or gross negligence. The court will dismiss the petition for consumer bankruptcy if the debtor has led to his insolvency as a result of intentional action.

It is worth mentioning that after the court’s decision, the debtor’s property (mainly houses, flats, recreational plots or cars) is auctioned off, and the funds obtained are used for the proportional repayment of claims. If the sums obtained from the sale of the debtor’s assets are not sufficient to satisfy all creditors in 100%, the court will additionally establish a repayment plan.

The Ministry of Justice is working on amendments to the act that are supposed to mitigate applicable law. The project creators want the court to investigate only intent and gross negligence when declaring consumer bankruptcy. The circumstances of the emergence of insolvency will be relevant only at the stage of determining the repayment plan of creditors, which means that they will no longer be the basis for rejecting the application for consumer bankruptcy.

 

Advantages and disadvantages of consumer bankruptcy
Disadvantages Advantages
Loss of assets – probably all. Certainty of total indebtedness – cancellation of unpaid liabilities occurs after the court decides a favorable decision and liquidates the debtor’s assets.
With the declaration of bankruptcy, all consumer property becomes a “bankruptcy estate”, managed by a trustee appointed by the court – this means that the consumer cannot freely dispose of his property (e.g. sell a car). Consumer bankruptcy suspends pending enforcement proceedings as well as pending court proceedings.
Part of the debtor’s income will be included in the bankruptcy estate and will be transferred to creditors. The debtor does not have to be afraid of debt collection companies.
The procedure of consumer bankruptcy is extremely complex and time-consuming – the court scans all the debtor’s finances. Mental relief – many people suffer badly from debt, which worsens their health.

 

Credit after consumer bankruptcy

Credit after consumer bankruptcy

No current regulations provide grounds for not granting credit to a person with consumer bankruptcy. However, it should be remembered that after the court declares consumer bankruptcy, we cannot freely manage our own assets. This means that we cannot take equipment on installment or loan without court permission.

Moreover, the practice of banks indicates that it is very difficult to get a loan after the declaration of bankruptcy. – The consequences of a declaration of consumer bankruptcy do not end with the repayment of all creditors. When applying for a loan, e.g. for an apartment, banks use data from the Credit Information Bureau (BIK). After the declaration of consumer bankruptcy, this fact is recorded in BIK and the credit history will appear in the databases for the next 10 years, which in most cases will mean a refusal to grant a loan.

How to avoid consumer bankruptcy?

How to avoid consumer bankruptcy?

We advise you above all prudently to make decisions about incurring liabilities. This may be obvious, but sensible management of your own money will help you avoid bankruptcy. Sometimes it is enough to think twice whether we need more installments to save ourselves and our family from stress and the need to declare bankruptcy.