Breaking News: Bank Embargoes on Credit Card and Loan Debts in Peru
Peru – In urgent breaking news, Infobae Peru reports that debt on credit cards or loans can lead to bank embargoes, potentially affecting your home or part of your salary. While many fear this possibility, lawyer Renzo Monroy, a specialist in Civil Law, clarifies the conditions under which banks can execute this measure and the legal protections in place for debtors.
Understanding Bank Embargoes
Embargoes are legal measures aimed at ensuring debt compliance, affecting assets such as homes, cars, or bank accounts. However, banks cannot immediately initiate an embargo without an “executive title,” such as a promissory note or bill of exchange. If such a title is absent, the bank must follow a more complex legal process, starting with a notarial letter and potentially leading to a lawsuit.
Mortgage Loans and Salary Seizures
For mortgage loans, the process is more direct, as the property serves as a guarantee. The bank can seize and auction the property if payments are not made. The law also protects workers’ salaries, allowing only a portion to be seized if it exceeds S/ 2,700 per month.
When No Assets Are Available
If the debtor has no assets, the bank can still proceed with a judicial process. In such cases, the debt may be declared uncollectible, and the debtor’s name may be added to the Registry of Judicial Debtors. The Civil Code of Peru establishes that bank debts prescribe after 10 years, offering a potential legal relief for debtors.
Expert Tips for Financial Responsibility
Infocorp advises maintaining financial responsibility to prevent debt accumulation. Understanding the legal framework and seeking professional advice can help manage financial obligations effectively.
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