Amid economic instability and fluctuating incomes, many are facing increasing overdue payments, penalties, and repayment difficulties. In this situation, it's important to stay focused: understand the nature of the debt, understand the sources of the debt, learn legal ways to reduce or write it off, and seek professional assistance. Our article will help you understand the concept of accounts payable, its types, and possible solutions.
What is accounts payable?
Accounts payable are a citizen's unpaid monetary obligations to creditors. They can arise for various reasons: late payments on loans and credit cards, unpaid rent, taxes, communications services, utility bills, traffic fines, alimony arrears, and more. It's important to distinguish between "debt" and "indebtedness": debt is the amount the debtor is obligated to pay, while indebtedness is the aggregate of creditors' claims against the debtor at the time of analysis. Indebtedness can be either current or overdue. Overdue payments are often accompanied by fines, mortgage penalties, automatic write-offs, and restrictions on banking transactions. Important: even if the debt is small, it may be subject to restrictions due to non-payment (for example, the bank can exert influence through debtor databases, enforcement proceedings, travel restrictions, and other measures).
What types are there?
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Bank loans and credit cards: debts owed to banks for loans, mortgages, car loans, and credit card use.
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Utility bills and communication services: debts for electricity, heat, water, internet and telephone services.
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Taxes and fees: arrears on property taxes, transport taxes, insurance premiums, fines for late payment of taxes.
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Fines and administrative debts: debts for administrative offences, traffic fines, and penalties for traffic violations.
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Long-term debts: overdue payments on loan agreements between citizens and individuals, scheduled alimony payments, loan agreements between relatives.
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Enforcement proceedings and court debts: debts subject to enforcement proceedings, seizure of property, write-offs from accounts and accrual of enforcement fees.
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Other liabilities: debts to organizations for services rendered, rent, fines for late payment of utilities, debts for postal and courier services, etc.
How can I write off
It's important to understand: debt forgiveness is a legally regulated process with specific terms and procedures. Depending on the type of debt, different mechanisms may be applied.
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Settlement and refinancing. Evaluation of the possibility of reaching a settlement with the creditor, extending the terms, reducing the interest rate, or partially writing off the loan. Recalculating the terms of the agreement is often possible to reduce payments to a reasonable amount and ensure continued payments.
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Bankruptcy procedures for individuals. In cases of significant insolvency, bankruptcy may allow the debtor to be declared insolvent and partially discharged, leaving a reasonable rehabilitation plan in place. Filing an application and procedures are regulated by the Civil Procedure Code and the Bankruptcy Law. It is important to remember that bankruptcy affects one's credit history and future borrowing opportunities.
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Application of the restructuring law. In some cases, debt restructuring, payment schedule adjustments, and interest recalculation may be possible.
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Specialized programs and amnesties for specific categories of debt. For example, amnesties for overdue utility payments or tax amnesties for certain types of taxes under government decrees. These programs can be temporary or conditional.
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Judicial correction and write-off through the courts. In some situations, the court may find a portion of the debt to be unfair or disputed and order a partial debt write-off or waiver of penalties based on the creditor's illegal actions or violations of the law.
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Pre-trial work with the creditor. Negotiations can often lead to interest rate reductions, payment recalculations, and reduced penalty amounts without court intervention.
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Collection through enforcement proceedings. This applies to debts for which the forced collection process has already begun; statutes of limitations and legal means of protecting the debtor's rights are important here.
Summing up
Accounts payable in Russia are a collection of obligations to various creditors that arise for various reasons and require a tailored approach. It's important to address the issue immediately, analyze the debt, understand the types of debt, and take advantage of legal mechanisms for debt write-off and reduction. A free legal consultation at NSSD will help you properly assess the situation, choose a strategy, and support you through all negotiations with creditors, including legal proceedings if necessary. The right approach can help restore financial stability, reduce stress, avoid a deterioration in your credit history, and restore your ability to live debt-free.
