Bankruptcy & Debt Restructuring – The bankruptcy process is only initiated if the bailiff has not been able to collect the debt after freezing the borrower’s assets and accounts. Bondora either initiates this bankruptcy on its own or joins an existing bankruptcy filing. A distribution plan is then set up by the courts or bankruptcy registrar for the borrower’s assets and depending on the decision from the court, a new payment schedule is created for retrieving the principal. The court may also use debt restructuring to create a new payment plan for the debtor.
Civil case – In non-legal terms, this is where one person can sue another for not meeting the terms of a legal contract, i.e. paying back a loan. This is a more expensive process than a payment order as third parties such as lawyers will be involved.
Criminal – Very rarely, Bondora receives a notice about criminal proceedings related to the borrower. After an official notice is received from the authorities, the loan will be frozen until the police finish their investigation and the case is ready to be sent to court. In criminal cases, it is extremely unlikely that any funds will be recovered.
Deceased – When a borrower dies with a loan outstanding, Bondora seeks to work with the executor of the borrower’s estate to secure repayments due. However, it may come to light that the estate may not contain sufficient assets to repay the obligation. In the event that no recovery is possible, the loan will be written off.