The remainder of the debt waiver is recorded in the credit bureau statement and thus the loan will be issued after three years despite the absence of residual debt. The residual debt insurance is the end of a successful bankruptcy proceedings and the consumer will therefore initially receive no credit despite debt relief. Many people assume that the credit bureau is okay with a debt relief, but this is not correct. The debt relief is in the credit bureau, even if the borrower has no more debt. When a loan request from a German bank, the credit bureau information is obtained and the bank then receives the information on the residual debt exemption. From this follows in most cases a credit rejection. For three years the creditworthiness is not given, even if the debts are canceled.
Is there any consequences for the consumer?
If a consumer has survived the six-year good conduct phase in insolvency proceedings, then he should have actually learned from it. Already in the past, this person was not creditworthy and in the near future there is no chance. If a loan is not awarded despite a debt waiver, then this is positive for the person, because it does not start the next debt. The information of the credit bureau is therefore very important for the lenders, because it is certainly no credit awarded despite residual debt insurance. The information in the credit bureau actually confirms that a creditor has not paid his debts from the prospect in the past.
Before a credit or credit card is awarded, each bank always needs information. The lender always wants to know who he’s dealing with. Of course, it makes a huge difference whether a person has had any debt in the past or whether a credit bureau has always been flawless. If the obligations have always been met as agreed, then there is more credit than if there were already debts. The lenders fear that the loan despite debt relief, that the borrower takes over again and it comes to financial difficulties. The residual debt exemption is in any case very positive, even if the credit rating takes a little longer.
Important information about the loan despite the absence of residual debt
Most people looking for a debt relief loan will be disappointed. As a rule, some creditors have been left sitting on their debts and banks want to avoid this. After all, no one would lend money to a person who never repaid his previously borrowed money. Those interested should be thinking about everything at this time, but certainly not about renewed credit and the next debt.