Payments suspension, the solution if we cannot pay the mortgage
Nobody is safe of having some day a bad gust, a familiar problem, adjustments in his company, illness, unemployment, etc. For any motive it can happen that we could not face to the quotas or to the debts to which we had committed ourselves. First of all we will receive a notice of the bank, but if the payment does not take place shortly or a postponement is negotiated there us will begin a procedure of sequestration of the mortgaged good, since this is the guarantee of the bank to receive his debt.
We have already seen that now we have the option to declare ourselves in payments suspension, as they do the companies. With the new Law Concursal of 2004 the families have the option to request the creditors' contest (suspension of payments) and this way to stop the sequestration procedure and to paralyze the payment of interests of the debts. The contest until 2004 was an option that only the companies and societies had, but now the natural persons have been extended also. When we declare ourselves in contest voluntarily we can try to negotiate with the creditors the partial acquittance (the pardon of a part of the debt) or the waiting (the increase of the pay-off periods).
Disadvantages
When we declare ourselves in contest, although the executions and the sequestrations have been paralyzed, stop being the managers of our own finance, a Receiver will be in charge of arranging a plan of payment of our debts to the creditors leaving to us a quantity to be able to live. Thus it is not going to be easy to obtain in the future new loans again.
Another disadvantage there are the high costs of these judicial processes that increase as it raises the amount of the debt or of the number of creditors. In case of unpaid debts, but on which a guarantee exists, the contest or suspension of payments will not prevent the guarantees from being executed with the guarantors since they are not in situation concursal.