The relationship between a customer and the bank may experience difficulties for several reasons:
Money Management: This is when the overdraft, the bank allowed to over-indebtedness;
will out: it is then how to switch banks;
dispute: the banking ombudsman intervenes.
The debt overhang is unable to repay all its loans and to continue paying its current expenses (rent, electricity, fresh food daily).
Over-indebtedness leads to the overdraft and banking prohibited.
Typically, total mortgage repayments should not exceed 30% of household income (35% when you have high incomes).
Common causes of debt are:
a significant drop in income due to unemployment;
a decrease of income due to divorce or separation;
a reduction in income due to accident or illness and expense related thereto;
an excess of consumer credit.
If the debt is generally related to an incident or a precarious life, it is often accelerated by the availability of consumer credit, including revolving loans.
What to do in case of insolvency?
If the debt has not reached a critical threshold, it is possible to begin to treat yourself:
to reschedule its loans (the spread to lower monthly payments);
credits to redeem;
negotiate a payment deferral with the tax authorities, utilities, phone, etc..
And to renegotiate its credit, should contact their bank advisor.
If the debt becomes unbearable, any person may petition the Commission of indebtedness. To do so, he was to contact the branch of the Bank of France of his department and fill a file “statement of indebtedness.” Then the debt commission will evaluate the case and, if necessary, will make a recovery plan.
In case of insolvency, it is advisable to contact the office of the town hall to be helped in their efforts.