What to do if the loan note expires?

The IOU will also "expire"! The “expiration” of an IOU is essentially a statute of limitations. The statute of limitations for applying to the People's Court for protection of civil rights is three years. If the law provides otherwise, such provisions shall prevail. The statute of limitations shall be calculated from the date when the creditor knew or should have known that the right had been damaged and the debtor became aware of it.

1. What is the impact of statute of limitations?

Just because the "limitation of action" has passed, it does not mean that you cannot go to court to sue. If you do,

the court will still accept it. During the court process, if the other party knows about this matter and files a defense with the court that the statute of limitations has expired, after verification by the court, the court will no longer handle the case because the court will ignore cases in which the statute of limitations has expired!

2. The statute of limitations is coming soon, how to extend it?

Ask the other party for debts and retain corresponding written evidence. Preserve documented evidence in any way that demonstrates your right to continually assert your claim against the other party. Remember, the evidence must be in writing. Oral things are generally not recognized by courts, such as text messages, WeChat, recordings and other records urging debts owed, because we need to prove to the court that the statute of limitations has been interrupted.

As long as you prove that you claimed rights against the other party during the limitation period, the limitation period will be interrupted, that is, the three-year limitation period will be recalculated from the last claim. One of the best ways is to ask a lawyer to issue a lawyer's letter, which can be used as proof of the creditor's claim and is more legally binding than chat records. Because it is issued by a lawyer, the lawyer's duty is to provide legal services to the client.

Three. How to remedy if the statute of limitations has expired?

1. Negotiate with the other party and sign a repayment plan.

Negotiate with the other party. It would be better if the debtor could repay the money directly. If not, he can sign a repayment plan. In this way, the statute of limitations will be revived, and the calculation will start again after the repayment period agreed in the repayment plan expires.

2. Reconcile with the debtor.

In the account reconciliation, indicate how much the other party still owes you as of the deadline. The settlement also stipulates a repayment period, or the other party promises to repay the money, etc.

3. Inducing the other party to agree to repay the loan.

During the chat or negotiation process, guide the debtor to agree to repay. However, it should be reminded that if the chat history is recorded and saved, it is best for him to create a new written document to ensure repayment. Once the debtor agrees to repay, it means giving up the statute of limitations and the statute of limitations will be recalculated. Related questions and answers: How to deal with overdue loans? Legal analysis: If you want a loan, you can only communicate with the bank. You can also follow the following three steps to deal with it: 1. Be sincere and show that you are not maliciously overdue, but that you did not repay on time due to objective reasons. . 2. If the bank approves your situation, proceed to the next step. 3. Submit the "Overdue Objection Appeal Report", get it stamped by the bank, and submit the report to the Credit Reference Center for appeal. Legal basis: "General Principles of Loans" Article 12 Loan Extension: If the loan cannot be repaid on time, the borrower shall apply to the lender for a loan extension before the loan maturity date. It is up to the lender to decide whether to extend the loan. When applying for the extension of a guaranteed loan, mortgage loan or pledged loan, the guarantor, mortgagor and pledger must also issue a written certificate of consent. If there is an agreement, it shall be implemented in accordance with the agreement. ?The cumulative extension period of short-term loans shall not exceed the original loan period; the cumulative extension period of medium-term loans shall not exceed half of the original loan period; the cumulative extension period of long-term loans shall not exceed 3 years. Unless otherwise provided by the state. If the borrower does not apply for extension or the application for extension is not approved, the loan will be transferred to the overdue loan account from the day after the expiration date. Related Q&A: How do you deal with a loan that is overdue?

Everyone knows that loans are expensive, but they must be repaid. Failure to repay the loan on time may not only result in higher and higher interest rates, but may also affect personal credit, and may even be included in the "list of dishonest persons subject to enforcement."

Today, we will lead you to talk about the consequences of overdue loans and how to avoid them.

The consequences of overdue loans:

1. Penalty interest

Although each banking institution has the same policy, as long as the loan is overdue, penalty interest will occur. , that is, a certain percentage of interest is charged on the basis of the original interest.

2. Being listed as dishonest will affect future loans and real estate purchases

After the due date, bad records will inevitably be left on the credit report.

If the circumstances are serious, not only will the person be included in the list of dishonest persons subject to enforcement, but it will also affect future real estate loans.

After being included in the list of dishonest persons subject to enforcement, you will face a series of "restrictions on high consumption" behaviors. In addition to what everyone often hears about not being able to take planes, trains, or stay in interstellar hotels, you will also face restrictions on purchasing real estate.

On March 16, the National Development and Reform Commission, the Supreme People's Court, and the Ministry of Land and Resources jointly issued a notice on the implementation of disciplinary measures to restrict real estate transactions for dishonest persons subject to enforcement. According to the notice, the above-mentioned three ministries and commissions jointly adopted disciplinary measures to restrict real estate transactions against dishonest persons subject to execution and their legal representatives, principal persons in charge, actual controllers, and persons directly responsible for affecting debt performance.

3. Facing litigation issues

Generally speaking, after a certain period of overdue payment, the bank will issue a collection announcement. If the collection is invalid, the bank will sue the borrower and use legal means to maintain legality. rights and interests.

So how should we avoid the above situation from happening?

1. Dealing with "negligent" overdue loans

Many lenders are overdue due to temporary negligence rather than intentional behavior. At this time, you should call the bank immediately and explain the reason for the overdue payment. It would be best if the overdue payment is not your fault. Then ask the bank to issue a non-malicious overdue certificate and pay back the money in a timely manner.

2. The loan is overdue for more than 20 days

The nature of the loan has changed if it is overdue for more than 20 days. Because the bank is likely to send the bad records to the People's Bank of China, the first thing the borrower has to do is to actively repay the loan and contact the bank to inform the reason for the overdue loan, so that the overdue records may be eliminated.

3. Being included in the list of dishonest persons

When you are included in the list of dishonest persons subject to enforcement, you need to first repay the principal and interest, and then apply to be removed from the list.

The automatic repair time for personal credit reports is 5 years. If the lender can maintain good credit without overdue behavior for 5 years, the record will be automatically eliminated after 5 years.

Through the above introduction, we understand the serious consequences of loan default. Therefore, I would like to remind everyone that credit is the greatest asset for each of us. We must protect it well, practice it and cherish it!