Why Debts Don’t Disappear by Themselves

When facing financial hardship, debt can feel like an unbearable burden. Some people hope that a technical glitch or sheer luck will erase their loan records and free them from repayment. Unfortunately, that only happens in dreams. Here are the most common myths debtors believe — and the truth behind them.

Myth 1. If the lender doesn’t remind me about the overdue payment, they’ll forget about the debt

Lenders are required to notify borrowers about overdue payments. But even if the bank or microfinance institution (MFI) stays silent, don’t assume they’ve forgiven or forgotten your debt.

A text message or email reminder might fail to arrive due to a technical issue, but the information about your missed payment will still be sent to a credit bureau. This will damage your credit score and make it harder to get loans in the future.

Delaying repayment only worsens the situation. Penalties and late fees will accumulate, and your total debt will grow. If within six months you’ve been over 60 days late in total, the lender has the right to demand full repayment — even if the loan term hasn’t expired. For short-term loans (less than two months), this can happen after just 10 days of delay.

Once payments stop, lenders may also take the case to court. The longer the delay, the larger the amount you’ll have to repay.

Myth 2. If I stop communicating with the lender, they can’t make me pay

You can’t simply ignore your lender. Borrowers may withdraw consent for data processing — in this case, the bank or MFI won’t offer new credit products. But regarding overdue debt, the lender still has the right to contact you.

After four months of delinquency, you can submit a request to stop communication. This will stop phone calls, text messages, and personal visits, but the creditor can still send letters to your registered address.

One of those letters might contain a court summons — because refusing to communicate doesn’t cancel the lender’s legal right to collect the debt.

Myth 3. After a court ruling, the debt stops growing — so there’s no need to hurry

Sometimes, the court specifies a fixed amount that must be paid, without additional charges. However, in many cases, penalties and late fees continue to accrue until payment is made.

Usually, the court gives the borrower five working days to pay voluntarily — during that time, the debt doesn’t increase. If you miss this deadline, the lender or collection agency can request enforcement.

Bailiffs can then identify your bank accounts and order the banks to transfer funds directly to the lender. The amount will include all interest and penalties accrued by that date. The longer you wait, the more you’ll end up paying.

If there’s not enough money in your accounts, bailiffs have the right to seize and sell your property to cover the debt.

Myth 4. I can hide from creditors abroad

Running away doesn’t solve the problem. If you ignore court orders and don’t repay your debt for more than two months, you can be stopped at the border.

If you left the country before the travel ban was imposed, bailiffs can still trace your departure. If your assets at home aren’t enough to repay the debt, you may even be placed on an international wanted list.

Different countries handle foreign debtors in various ways. Some deport them back home, while others seize their overseas assets to cover outstanding debts.

Myth 5. If the bank’s license doesn’t explicitly mention lending, I owe them nothing

By law, banks are credit institutions. Lending is their core activity and doesn’t require a separate license.

Banks can issue loans using funds from different sources — such as deposits, corporate accounts, or interbank loans. A standard bank license usually states that the institution may “place attracted funds from individuals and legal entities on its own behalf and at its own expense.”

Client deposits are insured by the government, but that doesn’t cancel your obligation to repay borrowed money. This myth won’t protect you from paying your debts.

Myth 6. Declaring bankruptcy means I don’t have to repay anything

Bankruptcy doesn’t automatically erase all debts. The court first tries to return money to the creditors. The debtor may be offered debt restructuring or a settlement agreement. If no agreement is reached, the court orders the sale of all assets except personal belongings. The only property that can’t be seized is the debtor’s main residence — unless it was pledged as mortgage collateral.

Bankruptcy also damages your reputation and credit history, making it very difficult to borrow again in the future. However, if there’s truly no other option, bankruptcy can help resolve your debt problems legally.

What to Do If You Can’t Repay Your Debt

The first step is to contact your lender and honestly explain your financial difficulties. You might be able to agree on a compromise, such as:

• Requesting debt restructuring — adjusting your repayment schedule
• Applying for mortgage payment holidays if your loan is secured by real estate
• Refinancing your debt with another bank or MFI that offers lower interest rates

However, always read the new loan terms carefully to avoid falling deeper into debt.

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