Personal loan: the forfeiture of the benefit of the term

Thanks to the current crisis and the high prices of many consumer goods, it is possible for many consumers to buy the most common goods only by starting a loan. Loans are also subscribed for the purchase of consumer goods such as cars, furniture, household appliances; loans that, over time, and before being extinguished, are not always fully reimbursed for reasons not attributable to the debtor: often due to the loss of a job or due to over-indebtedness, the installment amount cannot be paid on time due to finding yourself in difficulty at the pre-established monthly deadlines.

With the occurrence of the debtor ‘s insolvency, the credit institution that granted the loan


Requires the performance of the service – or the payment of the entire residual sum – in a single payment: request that, almost in all cases, turns out to be impossible to satisfy.

The request is made by sending a registered letter containing the so-called termination of the benefit of the term (DBT). What can the debtor do in such cases? In the presence of particular conditions, it is possible to put forward a proposal for extinction called ” a balance and a settlement “. We see better what it is and when it is convenient to propose it.

The DBT allows the creditor – in this case the financial one – to request payment of the residual debt, reduced by interest, in a single solution . In this way, the debtor loses the possibility of repaying the loan on the agreed dates, with the consequence of finding himself having to repay the amount due by the deadline indicated. However, those who have signed a loan will hardly have sufficient liquidity to cover the remainder. So what can be done in these cases?

At this point the debtor can contact the financial company

financial company

To report that for reasons not attributable to him he found himself in a situation of over-indebtedness, such as not being able to regularly comply with the provisions of the loan agreement: for example if the loss of the work due to dismissal or closure of the company, it is advisable to notify the bank. In this way, in fact, the financial company will not have the possibility of foreclosing the salary through the attachment to third parties.

If, then, there are economic possibilities, it is also possible for the debtor to put forward a proposal for balance and write-off : that is, a settlement agreement between creditor and debtor to definitively close an unpaid loan, usually offering a lower amount than the residual debt. In this way, a sort of “agreement” is made in consideration of the unexpected economic difficulties that the debtor foresees will last over time, thus extinguishing its debit position through the all-inclusive payment of capital, interest and expenses for a smaller amount.