Borrowers with outstanding mortgages or loans in Russia may be taken aback by an unexpected turn: a mortgage rate of zero.
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Starting on May 20th, Russians, including mortgage holders, may consider kissing their debts goodbye, all thanks to a groundbreaking Supreme Court ruling that could be their lifeline out of financial quicksand.
According to a source, this unprecedented decision could offer a lifeline to those who have found themselves drowning in debt.
While the case in question involves a woman who owed over 2 million rubles to a bank, she had multiple loans even before taking out the last one. Her income wasn't enough to cover her obligations, and the first instance court found her at fault for not meeting her financial responsibilities.
However, the Supreme Court saw the situation differently. Lawyers explain: the woman's actions, although unwise, were not intended to deceive the bank. Consequently, debt forgiveness becomes a possibility.
What's particularly significant is that the bank was aware of the woman's existing debts before extending the new loan, meaning they willingly took on the risk.
But what does this mean for regular folks? Now, even those with towering debts, so long as they were upfront about their financial situation and didn't act with intent to deceive, the court can declare them bankrupt and erase their debts. This ruling extends to mortgages and consumer loans.
So who can benefit?
- People hit hard by life circumstances;
- Borrowers burdened with multiple loans;
- Those who have been diligently repaying but now face insurmountable difficulties.
There's a catch, though: debt forgiveness is only achievable through the court system, under the condition that the borrower has been completely transparent about their finances.
Lawyer Maxim Ivanov comments, "This is a crucial precedent. It demonstrates that simply having multiple loans and miscalculating doesn't make someone a crook. The ultimate deciding factor is the absence of ill intentions."
This ruling by the Supreme Court could offer relief to individuals in Russia, particularly those in personal-finance distress, as it allows for the court-declared bankruptcy and debt forgiveness of mortgages and consumer loans, even for those with towering debts, provided they were upfront about their financial situation and did not act with intent to deceive. In the business world, this decision could potentially impact lending practices, as banks must now be more cautious about extending new loans to borrowers with existing debts.
