WHAT HAPPENS WHEN A DEBT IS NOT PAID?

• They will apply expenses and interest under Law 03/2004 and 15/2010 to combat late payment in commercial operations, or others that have been previously agreed.

If the debt has been referred to Servicobro, we will contact you to find a solution to the non-payment. Contact will become increasingly frequent, and we may even visit you in person at your home or place of work if you avoid our contact. (For security reasons, our agents carry recording cameras to prevent false allegations).

From this point onwards, there is a risk that your family, social circle or workplace may find out about your debts if they intercept any communication addressed to you (letter, registered letter, phone call, text message, WhatsApp message, social media message, etc.) or if you receive a visit from a Servicobro agent.

At this point, we will officially consider you to be in default, and we may pass on your default details to the main credit reference agencies consulted by financial institutions and companies in Spain (ASNEF, RAI, BADEXCUG, INFODEUDA, CYREX, etc.).

• Debt collection efforts will be stepped up.

• The debt will continue to increase, as administration fees will continue to be applied and statutory interest will also accrue.

• We will try again to reach an agreement with you and will probably offer you deferred payment options to settle the debt. If we do not offer you these options, you can request them, thereby preventing your claim from entering the legal proceedings stage.

Once your name appears on a debtors’ register, you will immediately be refused personal loans or mortgages; even applying for a simple credit card will be a problem. Financial institutions will refuse you any financing as they do not consider you to be ‘creditworthy and reliable’.

• Your debt can be shared with another collection company, or sold to an investment fund of the so-called "Vulture". Some collection agencies are incredibly aggressive to charge, keep this in mind before giving rise to your intervention.

• By failing to pay, you have breached a legal contract and Servicobro may take you to court. If you lose the case, the consequences will be:

 - Garnishment of your wages,

 - Freezing of your bank accounts.

 - Seizure of your home.

- Seizure of your vehicle

 - Significant damage to your credit history.

 - Seizure of other property or financial assets, such as inheritances, shares, etc.

- Damage to your reputation when the court seizes your assets and those around you witness this

DURATION IN TIME:

• If the debt has been taken to court, it will ALWAYS REMAIN ACTIVE once an attachment order has been sought; consequently, the creditor will retain that right for years until the debt is settled.

For information purposes, it should be noted that Servicobro claimed a debt in 2003 amounting to €82,716 and, 12 years later, when it was finally collected, it had risen to €179,154 including interest and costs. The consequence was a lost inheritance which the debtor was unable to benefit from.

THE MOROSITY DAMAGES YOUR IMAGE

As you can see, not paying a debt not only damages your access to credit, but also causes other headaches that can haunt you for a long time.

Having a bad debt history will negatively affect your chances of:

• Obtain employment. (more and more companies are investigating the delinquency of their employees)

• Rent a house.

• Register with a mobile operator.

• Buy a car or a house.

• Obtain a consumer credit for the purchase of TV, fridge, washing machine, house renovation, travel ...

• Start a business and request financing, request merchandise in deposit.

• If you are or have been a director of a company in debt, you may also face consequences.

• Etc…

In conclusion, it’s worth doing everything you can to pay off your debts. If you’re unable to pay them, please get in touch with us – you’ll be surprised at how flexible we can be if we see that you’re willing to pay.

And if you have considered putting your child or partner in charge of a business to avoid your responsibilities, think carefully and don’t forget what you have just read. We have seen the futures of many young people ruined because their parents put them in charge of a business whose debts ended up being claimed in court from the children in their personal capacity. (articles 236 and 241 of the LSC).

  Do your best to save yourself complications in the future.

www.servicobro.com