In what cases is a settlement agreement with the bank possible? The form of the settlement agreement, its approval and features of the Sberbank settlement agreement

All cases are unique and individual.
Understanding the basics of the law is useful, but does not guarantee results.
The possibility of a positive outcome depends on many factors.

Is it possible to reach an agreement with the bank after a court decision, and how to conclude a settlement agreement with the bank in order to reduce the amount of debt and avoid seizure of property and other adverse consequences? If the debt is confirmed by a loan agreement, and the bank has met all the conditions for going to court, a decision will most likely be made to forcefully collect the debt. During the trial, a settlement agreement can be concluded between the borrower and the bank at any stage, which must be approved by the court.

If the court has rendered its verdict and collected the principal amount of the debt and interest from the citizen, then the debt along with the accrued interest is subject to forced collection. According to paragraph 12 of Art. 30 of the Federal Law “On Enforcement Proceedings” No. 229-FZ of October 2, 2007, after the debtor receives a resolution to initiate enforcement proceedings issued by a bailiff, a 5-day period is established for voluntary repayment of the debt. If this requirement is not met, then the debtor may face:

seizure of property assets and bank accounts;
foreclosure of wages up to 50% in accordance with Art. 138 of the Labor Code of the Russian Federation and other types of income;
ban on traveling abroad;
sale of property at auction.

Such serious consequences force citizens to look for any opportunities to restructure the debt or obtain a temporary reprieve to begin repaying the debt. For this purpose, a settlement agreement can be concluded with the bank on the loan after the trial.

Important! The law provides for the conclusion of a settlement agreement only within the framework of a civil process so that it can be approved by the court. A settlement agreement with a bank on a loan after a trial is not subject to such approval.

What to do in such a situation, because the bank wants to receive a guarantee of fulfillment of the loan obligation, albeit with a delay. And the debtor wants to be sure that the bank will not unilaterally violate the agreement and send documents for collection to the FSSP. To do this, a settlement agreement with the bank after a court decision can be approved in a different way.

The terms of a post-trial settlement may include the following:

the bank’s refusal to collect part of the debt (usually interest) subject to full repayment of the loan obligation;
granting the debtor a deferment in payment of the debt;
provision of installment plans for debt payment with the establishment of a new payment schedule.

Thus, the terms of the settlement agreement, one way or another, will be related to the determination of the terms and procedure for payment. The debtor has no right to influence the change of the court decision if it has entered into force.

The agreements of the parties, recorded in a mutual agreement, may be approved by the court when considering the debtor’s application for a deferment or installment plan for a judicial act. Consequently, the actions of a citizen who has entered into an agreement with a credit institution after the trial will consist of the following actions:

negotiate with the bank and enter into an agreement;
file an application to the court for a deferment or installment plan, which will duplicate the terms of the agreement with the bank;
submit an application to the judicial authority and attach a copy of the settlement agreement.

Since the bank voluntarily agreed to provide the borrower with preferential terms for repaying the debt, the court is obliged to take this fact into account and satisfy the application. From this moment on, the settlement agreement will actually be approved by the court.

Free legal advice:

Since the preparation of such documents requires careful adherence to all the nuances, we recommend using the services of our specialists who have experience in handling such cases. We will help to achieve compliance with the legitimate interests of the debtor at all stages of obtaining a deferment or installment plan by court decision.

ATTENTION! Due to recent changes in legislation, the information in this article may be out of date! Our lawyer will advise you free of charge - write in the form below.

Mikhailov Valery Vladimirovich

He graduated from the Faculty of Law of St. Petersburg State University in 1998 with a degree in Jurisprudence. 20 years of professional legal experience, including in management positions. Specializes in issues in the field of housing, civil, contract, and corporate law.

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settlement agreement with Sberbank on a loan

Sberbank settlement agreement

In the Other legal issues section, the question is, is the settlement agreement with Sberbank real? The best answer given by the author of the step is In accordance with Art. 172 of the Code of Civil Procedure of the Russian Federation, the Court is entrusted with the obligation to find out whether the parties wish to conclude the case by concluding a Settlement Agreement. Whether the bank has intentions to settle the matter amicably depends on the specific situation. and it is impossible to describe all possible options..

Others make deals with the devil, but you only have Sberbank, try it.

You need to go to the bank and talk about a topic that interests you. It happens. that the bank is making concessions to defer debt payments.

it is very possible if the terms of the settlement agreement suit the plaintiff’s side.

It depends? If it’s on the issue of debt forgiveness, then it’s unrealistic.

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Settlement agreement with Sberbank

I am a debtor on a loan from Sberbank of Russia. The magistrate dismissed the first claim. Now I am waiting for the second city court in a civil case. Amount of debt thousand rubles What is the scenario of court decisions in relation to the debtor.

Lawyers' answers (4)

The magistrate dismissed the first claim

Obviously you mean a court order?

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What evidence of the reasons for not paying the loan is important for the court.

A serious illness of the borrower, an unexpected layoff at work, a sharp decrease in wages - that is, those circumstances the occurrence of which the debtor could not foresee and prevent, and which objectively did not make it possible to make current payments.

Arguments like “I don’t refuse to pay, but I have nothing,” “I still have unpaid loans” are poorly received by the court.

Have a question for a lawyer?

What does it mean that the magistrate overturned the claim? Refused to satisfy the claims? On what basis?

If you really owe the bank and do not pay the loan, the court's decision will naturally be in favor of the bank. And here it doesn’t really matter why you can’t pay.

Free legal advice:

Try to conclude a settlement agreement with the bank on the terms of debt restructuring, provide your debt repayment plan.

What is the scenario of court decisions in relation to the debtor.

The court's decision will be unequivocally in favor of the bank.

What evidence of the reasons for not paying the loan is important for the court.

No evidence can be valid in favor of the fact that the debt was not collected from you, for one reason, the bank fulfilled its obligations to you in providing funds on credit, and you violated the terms of the loan agreement. Or am I missing something? If this is the case, then you should ask a question with as much information as possible about the problem that has arisen.

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Skorobogatko Alexander Nikolaevich

You are absolutely right. The reasons I have indicated have “weight” only for the court’s decision on the possibility of reducing the penalty (penalty). That's exactly what I meant.

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It's easier to ask a lawyer!

Ask our lawyers a question - it’s much faster than looking for a solution.

Settlement agreement with the Bank: all the pros and cons!

According to the famous thinker and philosopher: - a bad peace is better than a good war.

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Hello dear blog readers.

Today we will talk about such a judicial action as concluding a settlement agreement with the Bank. Many of my subscribers and clients don’t know what it is, they don’t know when it’s profitable to enter into such settlement agreements, and when it’s not worth doing it!

All your questions, if they are not resolved after reading this material, ask in the comments. So let's get started:

What is a settlement agreement with the Bank?

A settlement agreement with the Bank is an agreement between the Borrower and the Bank, in which the parties provide for the termination of the dispute or otherwise eliminate other uncertainty in their legal relations through mutual provision (concessions). If the settlement agreement is concluded during the trial, it is subject to approval by the court.

So, from this definition we can identify as many as 4 legal features of a settlement agreement:

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A settlement agreement with the Bank is an agreement, and, therefore, a transaction to which all conditions of conclusion and legal consequences apply;
The subject of the transaction is the termination of a dispute or other uncertainty in their legal relations regarding the main obligation.

It should be noted that this transaction is aimed at reconciling the parties; after the conclusion of this transaction, there is no factor of struggle for one’s rights.

The parties to such a transaction make concessions.

This means that each of the parties to the settlement agreement, be it the Bank or the Borrower, agrees and begins to experience certain inconveniences. For example, this could be a reduction in the amount of the penalty (the Bank asked for more, but agreed to a smaller amount), an extension of the deadline for paying the next payment or the entire amount of the debt under the agreement, and much more.

Moreover, if one party bears the burden of concessions, but the other party does not, then such a transaction can be declared invalid. But this is all in theory; in practice, I have never heard or seen such judicial precedents for a settlement agreement to be declared invalid.

A settlement agreement can be concluded at any stage of conflict resolution: both before the trial, during the trial, and after the trial - at the stage of enforcement proceedings.

However, if a transaction is concluded during a court hearing, then it must be certified by the court. In practice, the court issues a ruling on approval of the settlement agreement.

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When should you agree to a settlement agreement with the Bank?

The question is actually very individual. Judge for yourself, for some some conditions will seem very favorable, and he will agree, but for others, on the contrary, the same conditions will not satisfy expectations.

I give you several basic rules, following which you will be able to answer the question of whether or not to agree to a settlement agreement with the Bank:

Write the conditions that existed before the start of the discussion of the settlement agreement and the conditions that are introduced by the settlement agreement with the Bank;

Let's say the Bank demanded rubles of the principal debt, rubles of interest and rubles of penalties. Total rubles. Plus, he demanded that the property be seized as security for the claim.

The settlement agreement establishes the following conditions: rubles of the principal debt, rubles the amount of interest, rubles of the penalty, total rubles. At the same time, a payment schedule is established and the Bank waives claims to secure the claim.

Write down the difference - what is the benefit. Your benefit from concessions must contain at least 50%.

The difference in the example above is rubles, which in percentage terms is 40%. Plus, the headache of securing a claim and possible seizure is removed. A schedule is set. All of the above suggests that such a settlement agreement with the Bank is beneficial for the Borrower.

Free legal advice:

In another example, the Bank itself offered us a settlement agreement. The conditions were such that a loan was taken out. Real estate collateral was provided as collateral for the loan without appropriate valuation.

The assessment was carried out during the court hearing and the amount of the value of the pledged property increased three times. The bank proposed a settlement agreement by which we give the pledge, and he writes off the debt in full.

Due to the fact that the assessment was increased, it turns out that the Bank, after selling the collateral at auction or taking the pledged property on its balance sheet, remains in debt to us. And a decent amount.

Under such circumstances, a settlement agreement with the Bank is not beneficial for the Borrower!

How to draw up a settlement agreement

The transaction is formalized by a document called a settlement agreement under contract No. _____. The settlement agreement must specify the conditions that currently exist - indicate the amount of the claims.

Free legal advice:

The second requirement is that it is imperative to indicate what the parties came to and what was agreed upon. It is best to write this requirement in the form of an indication of specific actions (forgive a debt, make a payment, fix a debt, and so on) both on the part of the Bank and on the part of the Borrower.

The third requirement is mandatory: when drawing up a settlement agreement with the Bank, pay attention to the time frame during which this or that legal action is performed.

Fourth requirement. Be sure to make sure whether the Bank’s representative has the authority to conclude a settlement agreement. Such authority in the power of attorney must be clearly and unambiguously stated, since in essence the settlement agreement is a specialized right of the party.

Fifth requirement. Please note the consequences that will occur if a party does not comply with the terms of the settlement agreement.

In this case, it is best to prescribe the consequences with actions, as in the second requirement (see a little higher).

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conclusions

A settlement agreement with the Bank is not a bad procedure in itself. That's just the question. As you know, no entrepreneur will work at a loss.

The bank has calculated the amount of debt and, as a rule, it is not satisfied with a smaller amount. Therefore, settlement agreements with the bank are concluded in the courts extremely rarely.

On the other hand, when the Bank feels defeated in court, it begins to look for alternatives in order to get out of the situation with the least losses. Under such circumstances, it is time to start talking about concluding a settlement agreement. But at the same time, you risk that you will not achieve a legal victory over the Bank!

But before you sign this document, think 100 times and analyze the situation. And best of all, contact a lawyer, who will explain everything to you. Lawyer games can be very dangerous and treacherous - remember this.

My name is Dmitry Guryev, I am an expert in the field of debt law. You can use my services to solve your problem or order courses to independently study your issue. My contacts are on this page.

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Hello, what are your conditions?? Do you teach for how much??

Hello. What kind of training are we talking about? Write me an email and we’ll discuss everything.

Hello, my mortgage with the RSKH was in arrears, there was a trial without me with a proxy. I want to refuse the settlement, is this possible?

To be honest, I didn’t understand anything. What is the global mortgage? What confidant?

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Settlement agreement with the bank

Everyone knows that banks can collect debt in two ways: through the judicial system and by selling a problematic agreement to collectors on the basis of Art. 382 of the Civil Code of the Russian Federation. All these actions result in problems for the debtor.

Important! Problems related to debts are classified as complex matters. Consult for free with the specialists of our “Legal Center”

In some cases, this helps to fix the amount and get a payment schedule, but this does not always happen. Therefore, some clients are trying to reach an amicable agreement with the bank and thus resolve the issue.

Pre-trial settlement agreement with the bank regarding the loan

Let's find out what this agreement is and why the borrower needs it? Actually, the answer to this question is simple. This is a request from the debtor to soften the terms of the contract, which will facilitate a speedy settlement with the creditor.

Typically, settlement agreements are attempted before trial or during trial. All conditions are negotiated between the credit institution and the borrower, and then the bankers decide what they can do and what is unacceptable to them.

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Important! The bank will agree to reconciliation if it understands that it is more profitable than going to court.

Terms of the settlement agreement that the bank can provide

The installment plan is the main concession. Usually it does not exceed six months, and in some cases it can reach up to a year. We previously wrote about this in the article “Instalment payment”.
Write-off of penalties on bank terms. For example, the debtor pays 100% of the principal debt and interest on it, and the entire penalty is written off.
Write-off of penalties can reach up to 50%.

Important! Banks often agree to a settlement before litigation. Collection officers have the right to provide such conditions.

When concluding a settlement agreement with the bank, it is necessary to discuss who will pay all expenses in accordance with clause 2 of Art. 101 Code of Civil Procedure of the Russian Federation. In rare cases, the lender may take over everything.

The settlement agreement is submitted by the parties to the court in the form of a petition. If the defendant does not comply with the conditions, the bank has the right to seize the property with the help of bailiffs.

What property is subject to seizure can be read here.

Sample

If the dispute between the parties has reached the court, then any motion or amendment must comply with the rule of writing claims. In civil cases, it is necessary to be guided by Art. 131 and 132 of the Code of Civil Procedure of the Russian Federation. This rule applies to all legislative documents.

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Important! If the papers are drawn up incorrectly, this is a reason for the court to refuse to accept the claim or agreement.

A template of any sample can be downloaded on the Internet or asked at the court office. The main thing is to correctly draw up the document for your situation. For example, to cancel a court order, no special knowledge is required, but to draw up a claim, you need to contact a lawyer.

What does a settlement agreement or any claim consist of:

Introductory part - the parties to the dispute are indicated, as well as the details of the court.
Claim - the reasons for the violation of the rights and interests of the parties or the conditions for the amicable settlement of disagreements are indicated.
Final - the articles of law that guide the plaintiff or the agreed participants in the process are indicated.

Samples of publicly available documents may not correspond to your situation, even if the situations are identical. They can be used EXCLUSIVELY for clarity.

Art. 173 Civil Procedure Code

Article 173 of the Code of Civil Procedure of the Russian Federation is the basis for concluding a settlement agreement. The court, having considered the arguments of the parties, may forcefully postpone the hearing and demand a settlement agreement from the plaintiff and defendant, even if both parties do not want it.

If the parties agree, then the proceedings end; if they disagree, then the court continues to consider the claim on its merits.

Written reconciliation is entered into the minutes and attached to the case.

Important! Reconciliation with the creditor involves payment within the agreed period. If this does not happen, a new claim is filed.

Trial

Any citizen or organization can file a claim if their rights and interests have been violated or infringed. The basis is Art. 3 Code of Civil Procedure of the Russian Federation.

The plaintiff is obliged to file a claim in accordance with the jurisdiction of his case (Chapter 3 of the Code of Civil Procedure of the Russian Federation).
Decide on your representatives, prepare a power of attorney (Article 48 of the Code of Civil Procedure).
Provide evidence indicating a violation of his interests.
Pay the state fee.
Notify the defendant of your decision (except for writ proceedings).

The defendant has the right to provide evidence of his innocence or eliminate the cause of the conflict (in this case, pay off the loan), or challenge the decision or agree on an amicable solution to the situation.

Bankruptcy proceedings - simplified procedure

Bankruptcy is an opportunity to start life with a clean slate. But it can also be an unforgiving procedure for the borrower.

For example, the bank learned that the debtor is the owner of two apartments. The creditor goes to court with a demand to declare the debtor bankrupt and sell the property.

If this is unacceptable for the defendant, for example, the amount of debt is less than the cost of housing or the person simply does not want to pay, you need to dispute this claim and try to come to an agreement. This is the only way to avoid deprivation of property.

Important! If you are a debtor, try not to show your assets to creditors unless they are pledged.

Having reached an agreement with a financial organization, you can safely remove real estate and other seized property from the bankruptcy estate. Otherwise, this will not work.

Financial recovery

Financial recovery is the essence of the settlement agreement. Usually, the main point is creditor restructuring of the loan and writing off part of the penalty.

Such actions allow the debtor to pay off the debt within two years (the maximum period granted by the court) without resorting to seizure of property or prohibitions and restrictions from the bailiffs.

Signs of financial recovery:

the amount of debt is frozen and does not grow;
there is a clear payment schedule;
there is a fixed amount of payments;
execution is controlled not only by the plaintiff, but also by the court.

Under such conditions, the debtor can repay the loan without resorting to bankruptcy and judicial restructuring.

Mortgage settlement agreement

An agreement can be concluded between the bank and the borrower, even if the loan is collateralized. Moreover, this is a mandatory condition for financial organizations.

Mortgages are controlled by Federal Law No. 102 and before foreclosure on the subject of the mortgage (Article 50), the lender is obliged to provide conditions that can help the borrower not lose their home.

If these conditions are not met, the financial institution has the right to file a claim and take the pledge onto its balance sheet for further sale.

Important! Typically, banks provide loan restructuring (they reduce payments by increasing the loan terms), but they can also offer individual conditions. For example, credit holidays for up to six months.

The graph shows calculations of non-profit organizations on lending rates for the years. Statistics differ significantly from official data. You can take advantage of this and attract similar structures to participate in your business.

You can resort to a settlement agreement ONLY if you are able to correct the situation, that is, pay off the debt. If you don’t know where to get money or are unsure of your abilities, then such actions will only complicate the situation.

We advise you to contact a specialist in your region or write to us in the comments to the article. We will try to respond as quickly as possible. You can also always contact the site’s on-duty lawyer in the form of a pop-up window.

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Debt to the bank - is a settlement possible?

The conclusion of a loan agreement indicates that the parties have reached a mutual decision regarding the timing and procedure for repaying the money, and the borrower agrees to fulfill the requirements of the financial organization. Thus, if the debtor violates the terms of the contract, this is a failure to comply with obligations to the bank. For example, if the agreement specifies a certain monthly payment amount, but the payment is made in a smaller amount, it means that the borrower does not comply with the terms of the agreement. Or when the document indicates a specific date for making the payment, and the payment of the amount

the debt is not made, then this will also be a violation of the terms of the contract. There are several options for solving this problem. One of them is the signing of a settlement agreement. There are situations when banks cannot normally resolve the issue of loan repayment, but basically, during the proceedings, the debtor tries to remain on good terms with the creditor. Financial organizations sometimes meet the borrower halfway and enter into a settlement agreement with him. Such cases are very rare; it usually happens when the borrower owes a large amount and the bank management is confident that he is able to pay part of the debt. These are mainly mortgages or business loans.

Do banks make concessions to debtors - individuals?

An agreement between a financial institution and an individual (borrower) is extremely rare. But now it is very popular. The impact is the crisis, due to which the number of overdue loans has increased. The essence of signing the agreement is not to reduce the penalty, but to increase the payment period.

More often, proposals for a settlement agreement come from the debtor and precisely during the trial. Usually the issue of the agreement is not raised before the trial. And when the borrower sees that he is beginning to lose the case, he begins to talk about a settlement agreement.

The client voices his desired proposals on how to repay the debt to the bank, and the creditor makes a decision - whether this is possible or not. Banks do not disclose how many lawsuits end with a settlement agreement, but they assure that there are very few of them; in some financial institutions there are only a few of them. Most settlement agreements are concluded in the foreclosure of mortgage loans.

The borrower's desire to part on good terms is not enough. If the financial situation of the debtor did not allow him to repay the debt, and he avoided contact, the banks will not meet him halfway and will try to collect the loan through the legal process with all interest and fines.

In what cases is a settlement agreement with the bank possible?

The bank agrees to a settlement agreement only when it sees the benefit and understands that it will receive the debt faster using this method than through the actions of the executive service. Financial organizations may require confirmation of serious intentions, and more specifically, ask to pay some part of the debt when concluding an agreement. It is very important for a financial institution to have evidence that the debtor really plans to continue paying the loan. Basically, after settlement agreements, problems with the borrower do not arise.

You need to be careful about the tax implications. If the borrower agrees to reconciliation, the written off portion

Tax debt is considered as income received on which tax must be paid. The bank may remain silent about this information.

According to the Arbitration Procedural Code of the Russian Federation, the borrower, when concluding a settlement agreement with the bank, must sign this agreement in writing. Without signing such a document, the agreement is considered invalid. In addition, each party must present documents confirming their authority to sign. The agreement must contain an agreement on debt restructuring using a method to increase the term of its payment. Each subsequent monthly payment should be less, which allows the debtor to pay off the debt in conditions of his unstable financial situation.

The number of copies of the agreement must match the number of parties participating in the transaction. Another such agreement is submitted to the judicial authority, in case this case is considered in court.

What to do if you have nothing to pay the loan with?

There is another method of paying off the arrears. For the amount of the principal debt that the debtor borrowed, a deferment is offered for a certain period, and interest must be repaid monthly in the specified amount and before a specific date. All provided obligations are recorded in the document.

In Russia, during the crisis, many companies found themselves in difficult financial situations. Some suffer from a lack of sales, while others suffer from an increase in accounts receivable. But it is important how debtors behave in such situations.

If he makes contact and shows his real financial turnover, the bank gives in to such borrowers and restructures the debt. There are companies that deliberately bring them to bankruptcy in order to not pay their debts. Often banks deliberately do not agree to a settlement agreement in order to acquire the borrower’s company. There have been cases when debtors won lawsuits and were released from paying accrued interest on the amount of the debt. But after that, all banks refused loans to these companies. Therefore, the borrowers were forced, contrary to the court's decision, to comply with the settlement agreement and pay their debt.

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The conclusion of an agreement on the provision of credit funds between a banking institution and the loan recipient is documentary evidence that the parties have reached consensus on the procedure, timing and other essential conditions for the return of funds that are fixed in this agreement.

In practice, in most cases, acceptance of these conditions actually means the borrower’s agreement with the requirements put forward by the banking institution regarding the timing and procedure for making loan payments. However, the very fact that the borrower signs a loan agreement, the other party of which is the bank that provided it, means his willingness to fulfill these requirements.

Thus, a violation of the terms of the signed agreement constitutes a failure of the individual who received a loan of funds from a banking institution to comply with the financial obligations assumed. Failure to comply with any of the clauses specified in the contract may be considered a violation of the terms. So, for example, if an agreement signed between a bank and an individual involves the monthly payment of a certain amount of money to repay the loan debt, paying a smaller amount means non-compliance with the terms of the agreement. Similarly, if the agreement specifies a specific date on which payment must be made, for example, the tenth day of each month, paying an amount of money to repay an existing debt after the due date will constitute a violation of the terms of the loan agreement. In this case, different options for solving the problem are possible: for example, the parties can use the form of a settlement agreement.

In such a situation, the banking institution has the right to make claims against the borrower if he refuses to fulfill his financial obligations. As a rule, in accordance with established practice, such claims in the event of refusal are initially brought against him out of court: the bank independently searches for the borrower and demands him to pay the missing amount of money, and often penalties associated with his failure to comply with the terms of the contract. If, in the process of trying to resolve the conflict out of court, the borrower continues to evade fulfillment of his obligations or completely hides from the specialists of the banking institution, the latter have the right to apply to the judicial authority with a statement of claim to collect from the defaulter the outstanding debt on the loan if he refuses to repay his financial obligations. .

Possibilities and feasibility of concluding a settlement agreement between a banking institution and an individual

However, both in the case of pre-trial settlement of issues related to the existence of an outstanding debt, and in the case of an attempt to resolve them in court, the success of the bank in collecting the amounts due to it largely depends on the financial situation of the borrower. So, if his failure to fulfill his obligations is due to the fact that, for example, he accidentally missed the deadline for making a payment because he was not in the city on the date of the next repayment stipulated by the agreement, it will be enough for the bank to simply collect the amount that it must receive from the borrower. However, if his financial situation has sharply deteriorated, he may indeed be unable to fulfill his obligations to the same extent on time. In this situation, one of the solutions may be an offer to conclude a settlement agreement, which the borrower puts forward in relation to the bank.

In accordance with established practice, it is the borrower who proposes to the financial institution the terms of the settlement agreement, which could, on the one hand, be feasible in its current financial situation, and on the other hand, be effective enough so that it ultimately fulfills its obligations. assume financial obligations. Having received such a proposal, the banking institution, in turn, must consider the terms of the settlement agreement put forward and form its assessment of the degree of their acceptability.

If the proposed conditions seem unsuitable to the banking institution, it may send the borrower a refusal of the settlement agreement. However, the organization's specialists should take into account that in some cases such a refusal may entail the need to participate in a lengthy judicial procedure, which may result in a decision in favor of the borrower. Therefore, refusal is a step that must be carefully weighed in terms of assessing further developments.

If the proposed conditions, perhaps after some adjustments to the term or other parameters of the agreement, suit the banking institution, a settlement agreement must be concluded between them that meets all the requirements of current legislation. In addition, it is necessary for the bank’s specialists to approve the settlement agreement proposed by the borrower.

Form for concluding a settlement agreement in the event of an outstanding loan debt

According to Article 140 of the Arbitration Procedural Code of the Russian Federation, an individual entering into a settlement agreement with a bank must sign this document in writing.

Refusal of this method of formalizing an agreement entails recognition of the agreement reached between the parties as invalid. Moreover, when signing the agreement, each party must present documents confirming its authority to sign it: otherwise, if they refuse to present the necessary documents, it may subsequently be proven that one of the parties did not have the appropriate authority, and the signed agreement will be declared invalid.

The same article of the specified section of this regulatory document requires that the settlement agreement concluded between the parties contain all the essential conditions that accompany the fulfillment by the party or parties of their financial and other obligations. In particular, in modern practice, a settlement agreement between an individual and a bank most often implies a significant change in the terms of the original loan agreement.

An example of a settlement agreement may contain an agreement to restructure the loan by increasing the term of its repayment: in this regard, each monthly payment becomes smaller, which allows the borrower to repay this loan under the conditions of his current financial situation, which has undergone a significant deterioration compared to the original one. Another common way to reduce the debt burden on the borrower is to provide him with a deferment in the payment of the principal debt: for a certain period established by the terms of the settlement agreement concluded between him and the bank, the borrower is only obligated to pay interest on the loan without repaying the principal debt. All such conditions, as well as the deadlines for fulfilling the client’s obligations to the bank, must be recorded in the document.

Circumstances and conditions for concluding a settlement agreement provided for by the current legislation of the Russian Federation

All these and similar conditions must be clearly and unambiguously recorded in the form of a concluded settlement agreement. In this case, paragraph 4 of Article 140 of the Arbitration Procedure Code of the Russian Federation requires that the number of copies of the signed agreement be determined in accordance with the number of parties who signed it. In addition, they will need to generate another additional copy of the document, which will need to be submitted to the judicial authority if a trial is already underway in this case. This additional agreement may be required in other cases, for example, when bailiffs intervene.

Indeed, in practice, a proposal to conclude a settlement agreement most often comes from the borrower already at the stage of the trial in the case of collection of outstanding debt from him. However, it should be borne in mind that such an agreement can be reached by the parties at the stage of pre-trial settlement of the conflict regarding the existing debt. In addition, it is necessary to take into account that a banking institution and an individual can enter into a settlement agreement at any stage of the judicial process or after its completion, when the procedure for executing the decision made by the judicial authority has begun.

Important! The bank will agree to reconciliation if it understands that it is more profitable than going to court.