What Are Your Rights For Writing Off Interest

The Law on Debt Settlement Debits regulates the conditions, the manner and the procedure for writing off interest for collection of debts arising from services provided by utility companies (electricity and heat, water and waste), telephony, mobile and cable operators, broadcasting fee, maintenance of common premises, irrigation and drainage of agricultural land. Jeffrey I. Reisman Toronto is here to help you with all kinds of legal matters.

The subject of this Law is a write-off of the default or penalty interest that is related to the main debt and the costs of the procedure and it is liable to write off from the moment of filing a lawsuit for collection of a monetary debt (forcible collection) before a competent court until the final payment of the monetary claim, including the costs of the proceedings by the debtor.

Who has the right to write off the interest?

Any natural person – debtor who will pay the principal debt and expenses (court, notary, lawyer, enforcement expenses) to the procedure within 12 months from the day of the announcement of the Decision of the Board of Directors of the creditor, shall realize the right to write off interest.

Who makes a write-down of interest?

The write-off of interest payments for debt collection is performed on a voluntary basis by the creditor.

Creditors established by the Government and the municipalities that are state-owned, write off the claims on the basis of collection of the default or the penalty interest on the principal debt from the debtors, natural persons who have acquired the right of description on interest.

Privately-owned creditors voluntarily decide through their management bodies for a one-sided description of claims based on the payment of the default or the penalty interest on the principal debt from the debtors, natural persons who have acquired the right to a description of interest.

These creditors with a decision made to the Board of Directors write off the interest for collection of debts arising from the services stated above, within 15 days from the day this Law enters into force. The creditors shall publish this decision on their website on the day following the day of its adoption.

Notary and enforcement agent are considered creditors only in case of collection of the costs of execution arising from forced debt enforcement.

Procedure for exercising the right to write off interest

The acquired right of write-off of interest, the debtor-physical person, realizes by submitting a request to the creditor. Upon request, the debtor encloses evidence of the payment of the principal debt.

The creditor is obliged, within 15 days after the receipt of the submitted proof of payment of the main debt, to notify the debtor in writing with a registered consignment at the address registered with the creditor, for the adoption (in whole or in part) or for rejecting the write-off on interest.

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