Korkushko M.V. The Problems of the Current System of Interaction Between Non-Payers as Physical Entities and Prevention Methods

Abstract: The article is devoted to the analysis of the issues arising in the process of interacting with defaulted loanees as physical entities. The scope of the research covers the process of interaction with banks and collectors, bankruptcy process and proceedings, and application for the loan restructuring. Korpushko also describes certain categories of loanees who do not have substantial alternatives to restore their solvency. According to the author, in order to eliminate arising drawbacks it is necessary to reform the system of interaction with loanees, however, such transformation would demand serious financial investments and legislation improvement. In this regard, the author offers methods to prevent past-due liabilities. In the process of the research the author has applied such methods as literature review, analysis and synthesis, comparison, induction, deduction, abstraction, formalisation and hierarchical classification method. The author also offers particular variants of preventing past-due liabilities including regulation of the debt-to-income ration (DTI), insurance rates and blocking the interest from charged amounts with the following transfer of the sum to the account of debt recovery. The author notes that the DTI level should be less than 50% and directly correlates to a loanee's mandatory expenditures depending on the region of his or her domicile and salary level. 

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