Especially in the crisis phase, insolvency continues to spread both in the private and business sectors. Many people are over-indebted, cannot pay bills and live almost at the subsistence level. Anyone who is insolvent must leave a loss slip with their creditors.
Loss note – what is it anyway?
A loss note will be issued if you are over-indebted. You are insolvent and can no longer pay even the smallest bills. Creditors receive loss certificates, which assure you that if the debtor gets money again, be it through wages, sales or otherwise, the creditor will have to pay this money, provided that the debtor does not fall below the subsistence level. The loss certificates exist for up to 20 years. If after this time no payment settlement has taken place, the loss slip expires and the debtor no longer has to pay the amount.
Can I apply for a loan despite the loss note?
All kinds of credit providers are bustling on the German market and especially on the Internet. Many of them also offer a loan with a loss note. Reputable providers usually do not offer a loan with a loss note. Those who do allow this should be thoroughly checked for seriousness before graduation.
Otherwise, you can quickly fall into an even deeper grave of debt than you can imagine. Even if the provider is reputable, a loan with a loss note is not recommended. Someone who already lives on a subsistence level and has no money, but wants to afford something quickly, be it to improve the psyche of the individual or simply to do something good for himself quickly, should never take out a loan.
Anyone who has not previously managed to meet payment targets will not be able to do this even with a loan with a loss note. The new debt to be expected in the future will not only harm the creditor but also the debtor, because new loss certificates can be issued, which in turn entail a term of 20 years. Nobody should live on the minimum subsistence level, especially not more than 20 years. You should therefore look for other options beforehand and not take out a loan with a loss note.