La Settlement it is a payment method that citizens can consider in order to face some debt. However, it is important to take into account several salient aspects, which will be detailed in this information.
Method to deal with a debt
Settlement
La Settlement It is a process carried out to pay a debt through the delivery of a good, for these cases it is necessary that both the person who has the debt and the one who made the loan agree on how the payment is going to be carried out. Generally, these agreements are made with a bank when you make a loan to purchase a home, which is mortgaged in order to pay off the debt.
The action of the banking entities in these processes is noteworthy, if you are interested in it, we recommend seeing the Bank deposit
In countries
An important point that must be taken into account is that dation in payment can be carried out in different countries, in which differences or different points are highlighted. For this, the following are considered.
Ecuador
From the Organic Law in relation to regulating the credits given to acquire a car or home, the dation in payment process is validated to have credits that are a maximum amount of 500 salaries. So if a person requests this loan to obtain a home, he will have a debt that must be paid within a set period of time, in the event that he does not comply with it, then he will no longer have possession of this asset to be able to pay off the debt.
After auctioning off this asset that has been mortgaged, the person with the debt will no longer be able to access it and neither will it be possible to search for its assets for some type of payment to be made. In addition, the case of a type of guarantee established by mortgages abroad is also considered in such a way that it can be obtained from the credits to execute them in their country. It is a case that cannot be carried out by the regulations in Ecuador.
This is due to an increase in citizen security, trying to avoid any type of monitoring by banking entities with respect to Ecuadorians who are outside the country, considering the case that these people have obtained a loan in the abroad and then they couldn't pay. Another point in which dation in payment can be applied is with the purchase of cars, for this type of case the credit obtained is a maximum of one hundred salaries and this asset must also cover the amount of the credit obtained.
Spain
An outstanding aspect is that in Spain dation in payment is not generally applied, due to the mortgage laws that the country presents. Yes, there is the possibility of carrying out this type of process voluntarily, but it is not usually a highly used method. In this case, it is considered that both the lender and the indebted person will be limited by part of the property that has been mortgaged without causing negative consequences.
Then, the laws in Spain provide for the process in relation to dation in payment, for this it will be necessary to make the correct agreement with the entity that will provide the credit, if the process of agreement between the lender and the debtor then the law establishes that the mortgage will be given by a guarantee according to a variety of requirements without giving limits to the person who has the debt.
The Spanish territory has laws in relation to the Civil Code, these do not express the dation in payment process for the fulfillment of the requirements, but if it is valid to be carried out by some specific provision. For this reason there is very little application of dation in payment in Spain
United States
In the case of the United States, the application of methods to be able to weld a debt with a bank entity is frequently highlighted, therefore, dation in payment is very useful since it guarantees the person an efficient process. However, it is highlighted that the dation in payment has requirements because it is only used for a loan that has to do with home mortgages.
Importance
Knowing the dation in payment process is very important since it allows the person who has a debt to face it even though he no longer has possession of the property, action by the mortgage. For this reason, it is considered an optional method to be carried out so as not to have a highly complex situation.
On the part of companies, as well as entities, this type of forms of payment is not a negative process, because carrying out dation in payment allows it to be even faster, and also requires fewer resources or parameters to take into account. account that can produce a greater amount of expenses.
If you are interested in obtaining assets, then it is important to consider certain situations here. Here we recommend you read about what is surplus value