How to reschedule debt?

Anyone who inherits is happy about perhaps unexpected asset growth. Discounts include not only assets, but also debts. As an heir, you are the legal successor of the testator and assume his rights and obligations. In other words, you take on not only the assets the testator leaves you, but also his financial obligations. Especially if a property belongs to the estate, you should be able to assess how you deal with estate liabilities. In the best case scenario, use the property to reschedule existing estate liabilities or even the property itself.


What to do if you inherit debt?

inherit debt?

If you have to be the heir to the testator’s debts, you can first try to sell assets from the estate and use the proceeds to pay off the debts. The sale may amount to a zero-sum game. They are rid of the assets, but they also have no liabilities.

If you have inherited a property, you have additional options. Of course, you can sell the house and use the proceeds from the sale to pay any land charges on the property. However, you may also want to keep the house and have concrete emotional reasons not to sell, especially if it is your parents’ house. A property has the advantage that it serves as collateral for loans and thus secured loans enable particularly favorable mortgage rates. If you consider that mortgage interest rates were around 10% in the 90s and have now dropped to a level of 1 to 2%, debt restructuring of debt with the help of a property is an obvious necessity. You should assess debt restructuring of debt under the keyword of mortgage lending.


What is it like when the property is financed?

What is it like when the property is financed?

If the testator has mortgaged the property with a mortgage to secure a loan, you must first process the existing loan agreement. The mere fact that the testator died as a borrower is not a reason that you, the heir, could terminate the loan. A right of termination only exists if the agreed debit interest rate expires or ten years have passed since the loan was paid out. If the testator has agreed on a variable interest rate, you can cancel without giving three months’ notice.


Compare a prepayment penalty with the interest savings

Compare a prepayment penalty with the interest savings

Regardless of this, you can negotiate with the bank about early termination of the loan, but you will then have to accept a prepayment penalty. The prepayment penalty is the compensation that the bank can charge if a loan is canceled early. The compensation is based on the fact that the bank can only lend the borrowed money under conditions that are worse than what was agreed in the terminated loan agreement. In view of the extremely low mortgage interest rates at the moment, it may be advantageous to accept any prepayment penalty and to conclude a new loan agreement with lower interest rates on mortgage terms. The interest you will save with the new loan agreement will make up for any prepayment penalty that may be required.


How do I reschedule debt?

debt loans

Now we get to the point. If you are lucky, the property is not yet fully charged or may not be charged at all because the testator has paid it off in full. In this case, you can charge the property with a land charge and use the loan to be secured to pay debts. Your advantage is that you drive mortgage rates far more cheaply than if you accept a consumer loan with significantly higher interest rates or overdraw your checking account. With mortgage financing (construction financing) you know exactly how high your monthly burden is and you can reliably plan your household budget.


Particularly advantageous: apartment building

apartment building

If you have inherited an apartment building, you now also receive the rental income as the heir. If you now reschedule your estate liabilities via a mortgage loan, you will benefit from low mortgage rates, the monthly charge of which is likely to be considerably lower than the rental income. So your rental income exceeds the principal. If you have rescheduled your debts or paid as fully as possible, you are on the absolutely safe side.


The debt consolidation loan is aimed at extinguishing all debt positions by concentrating them in a single installment. Often the bank, following the revocation of credit lines or the forfeiture of the term of the loans, proposals or “forces” entrepreneurs in difficulty to take out a loan for the consolidation of debts.

 This mortgage is simulated in nature

money loan

Since the real will of the credit institution is to acquire a mortgage guarantee for a pre-existing debt possibly deriving from the current account entrusted and therefore to transform an unsecured credit into a mortgage credit.

This mortgage is fraudulent to the law in that it achieves the objective of circumventing a hypothetical per condition creditor in the event of the bankruptcy of the company.

If the granting bank is already a creditor of the person to whom the loan is granted

If the granting bank is already a creditor of the person to whom the loan is granted

The sum granted as a loan is paid on current accounts entrusted, the debt is cleared; but after the disbursement of the mortgage, the debtor’s position vis-à-vis the lending bank remains unchanged but the original credit is provided with real and personal guarantees.

The loan for the consolidation of the debts in these cases is NULL, as there is only a formally credited, to settle the debts towards the granting bank.



money loan


  1. – According to the Court of Cassation, a loan contract is a real contract that is perfected with the delivery of the thing (so-called tradition) from the grantor to the borrower who buys the property.
  2. – the entrepreneur will never have the availability of these sums as the bank pays the mortgage on the current account for the sole purpose of clearing a previous debt exposure (current account balance).
  3. – the purpose loan is void, and the nullity can be asserted by anyone who has an interest in it


  1. The analysis of the current account often shows the illegitimate application of usurious interests, anatocism, ultralegality, overdraft fees, and undue expenses.


  1. the stipulation of a mortgage loan to transform an unsecured credit (current account entrusted without guarantees) into a mortgage credit is in fraudulent law.
  2. in bankruptcy, this case integrates the offense of competition with preferential bankruptcy since, the bank’s will to damage other creditors is evident, knowing the entrepreneur’s state of insolvency.
  3. Creditors having been defrauded by this trick to create the privilege can propose revocatory action

Credit for civil servants without credit check

Officials have a different status in the financial world than normal salary borrowers. The very fact that they are almost non-cancellable is enough to grant a loan to civil servants without credit rating.

Especially at house banks, where you know the customer, it is no exception that this loan is granted. Only life-long civil servants who can prove their civil servant status receive this credit. However, the bank must be specifically asked about this loan, because the bank often does not offer it without being asked.

Conditions of the bank

Conditions of the bank

The special loan for civil servants without credit rating grants conditions that are very good. The official can often choose a very long term, often up to 120 months. In addition, the loan amount chosen is very high and can be as high as USD 100,000. With the long term, there are low monthly installments that have to be paid. In this way, a house can also be bought or built comfortably without having to pay a lot of money.

With this loan, the bank often requires life insurance to be taken out. This serves not only as security for the bank, but also for the borrower. If, due to an accident or illness, they are no longer able to repay the loan, the insurance will cover the remaining amount. The special thing is that life insurance runs as long as the loan. The borrower only has to pay the monthly insurance premiums. At the end of the term, the loan is repaid with the insurance premiums paid.

Credit abroad possible?

Credit abroad possible?

Not every civil servant wants to burden his credit rating and wants to take out a loan for civil servants without credit rating abroad. The same conditions apply here for the borrower. The loan is not recorded in the credit rating, so that another loan can be taken out in the future without any problems.

The salary and the secure job are enough for the banks as security, so that there will be no problems with the application. This loan for civil servants without credit rating can either be taken out locally or through a credit broker.

Learn How to Negotiate Debts: Tips for Getting Out of the Red

Are your bills making you sleepy? It’s time to solve them. With conversation and new deals, you can make your financial life healthy and stable. Understand how to negotiate debt!

When you have a debt, trying to repay it is a priority. Leaving a debt open can lead to several legal problems. CPF blocking, increased interest and even seizure of the debtor’s assets are some examples. But if your debt is already high and you know you can’t pay it back, there is an alternative! Anyone is subject to this situation, after all, unforeseen happen.

Because we will help you see options to get out of this.


Financial institutions offer an alternative: negotiate debt. Trying to come to terms with your lender is a way to pay back what you owe and have a more stable financial life. Here are some tips for successfully negotiating debts and getting your finances ready!

First: patience

Your accounts were not made overnight, and to negotiate debts and settle them will not happen either. Before making any decisions, it is important to put together a financial spreadsheet. It is essential to know exactly what your income is, your expenses and especially what your debts are.

By putting the values ​​on paper, you will have a more accurate dimension of how much you owe and what options to get out of this situation. After that, it is important to set your priorities. Some possible parameters to determine the urgency of each are:

  • Which debts are older;
  • Which debts are higher;
  • Which debts have the most expensive rates.

An important tip is to choose to pay off the last first. This is because interest may increasingly increase the amount you owe.

As you tidy up your spreadsheet, considering cost savings is essential. Realistically, see what can be cut from your personal and / or family budget. This is not an easy thing to do, but it is important to understand that during this period, wiping out accounts is a necessity. Talk to your family, re-establish priorities and cuts that can be made. It’s time to work together.

How to negotiate debts?


Negotiating debts involves asking the lender for a new form of debt payment. It is to show that under the conditions previously agreed, you will not be able to pay what you owe, but you will not stop paying. It’s just a readjustment in the contract.

Therefore, you need to show that you can afford the new format. Looking at your budget, make sure that the new proposal will not commit more than 30% of your monthly income. Otherwise, you may end up getting into another debt.

Before negotiating debt, create an action plan

Find out exactly how much you will be able to pay under this new agreement, what its terms are, how the interest rate adjustment will work, and what the new payment deadline will be. This proposal may or may not be accepted by the financial institution, and this is where the negotiation part will begin.

A good tip is that this process is all done personally. It is also possible to do online trading, however, it is difficult to be able to change the conditions set out in the text. When you talk directly to a person, you open spaces to ask for discounts, bargain and reach a deal that is good for both parties.

Always be friendly but assertive, and show that you have awareness and autonomy in what you are doing.

You know your finances and you know what is beneficial to you.

If you realize that your debt is much larger than what you earn, you are a super debt. This is the reality of 15% of the Brazilian population, and calls for the same measures that we describe but more aggressively. In this case you can also seek PROCON expert help.

Loan: is it worth it?

In the latter case, this may be an alternative. Focusing on swapping your debts, it may be worthwhile to apply for a loan that has lower interest rates than your previous debt and pay off at once. This will give you more control over the payment to the lender and you will not be surprised by an absurd increase in value thanks to fees, for example.

If you want to know the best alternatives, search here on our site. Our partners have great options with interest from 0.99% per month, depending on the type chosen. It’s easy, fast and totally online. Do not waste time and quite soon your debts to have a lighter and healthier financial life!