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Law firm for loan termination
Fast, understandable and honest - directly with lawyer Corinna Ruppel
We know how stressful a loan termination can be and support you with comprehensive expertise in banking law. With our many years of experience, we guide you safely through all negotiations and check for possible errors on the part of the bank. You will receive empathetic support so that you can protect your rights and minimize financial burdens. Rely on our specialized expertise to act quickly and decisively.
Loan termination: Stop excessive claims
As a law firm specializing in banking law, we can provide you with sound expertise and clear guidance in the event of a loan termination. A central concern is to examine the legal basis and uncover possible sources of error on the part of the bank so that you are treated fairly and justly in this often tense situation.
In many cases, loan terminations are based on breaches of contractual conditions or assumptions about your financial situation. We analyze the termination, explain all the options to you in a comprehensible manner and thus create a solid basis for decision-making. Particularly in the event of financial bottlenecks, swift clarification is essential in order to avoid long-term burdens.
We take over the negotiations with the lender for you, check possible deferment or debt restructuring options and consistently stand up for your interests. We always keep an eye on your personal situation so that you feel you are in safe hands. Put your trust in our experience and let us work together to find a sustainable solution that provides you with financial stability.
"We look for the best solution for you. Sometimes it's to go to court, other times it's to seek an out-of-court settlement. You will always receive open and honest advice from us."
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Clients' experiences with us
Loan termination: Legal classification and options for action
CDR Legal offers you comprehensive support if your bank has terminated a loan. A free initial consultation is possible at any time so that you can have your situation assessed quickly and efficiently. A loan termination often means a considerable financial burden and can have serious legal consequences. Our lawyers specializing in banking and capital market law know exactly what is important and are committed to helping you solve your case.
Legal classification and technical explanations
A “loan termination” is the unilateral termination of a loan agreement by the lender. This is often based on the assumption that the borrower is not fulfilling their contractual obligations properly or that the financial risk is too high for the lender. In many cases, the legal basis for this is § 490 of the German Civil Code (BGB), according to which an extraordinary termination can take place if there is good cause – for example, if several installments are in arrears.
The bank’s General Terms and Conditions (GTC) also play an important role. They often contain specific provisions on installment payment periods and the borrower’s duty to provide information. If material contractual obligations are breached, there is also a risk of termination. However, a borrower must not accept this measure without objection, as formal or substantive errors on the part of the bank are not uncommon. If there is such an error, the termination can often be successfully challenged or at least its execution can be delayed.
Practical recommendations for action
If you receive a letter of termination, the order of the day is to act quickly. Any delay can increase the financial burden and reduce the scope for action. The following steps can help you:
- Check the formal validity of the termination: Was a reminder sent in advance? Have deadlines and formal criteria been met?
- Contact the bank immediately to clarify any misunderstandings or errors. Sometimes the termination can be partially or completely reversed in this way.
- Seek legal advice before making large payments. Careless payment of outstanding debts could place a greater burden on you in the long term.
- Determine your overall financial situation and check options such as deferment, installment plan or debt restructuring.
In many cases, an amicable solution with the bank leads to a successful outcome. Whether by deferring outstanding installments, adjusting the repayment agreement or even withdrawing the termination – CDR Legal supports you in finding the best possible way for you.
Practical examples and lists
Banks can terminate a loan, among other things, if …
- … the borrower is in arrears with several installments and does not respond to reminders.
- … an imminent insolvency becomes apparent.
- … guaranteed securities, for example a property, have fallen considerably in value.
- … material information on income or assets was concealed.
The legal consequences of a loan termination can be far-reaching. Residual debts are often due in full immediately, so you may have to pay all outstanding installments at once. In addition, there is the threat of dunning and enforcement proceedings and even the forced sale of a property. A quick, well-thought-out approach is therefore essential.
If you are already faced with a termination, it is worth checking whether the bank has actually met all the requirements. Detailed information on the legal background and possible defense strategies can be found in the further information on bank termination. There you will find out what steps you can take in a specific dispute and how you can successfully take action against an unjustified termination.
Procedure of a legal audit
CDR Legal first carries out a well-founded assessment in order to examine the prospects of success of a defense or contestation of the termination. The main points are:
- Formal effectiveness: Have all reminder and notice periods been observed?
- Contractual clauses: Do the GTC and contractual provisions comply with the statutory provisions?
- Demonstrable breach of duty: Are there actual indications of a significant deterioration in your financial circumstances?
- Proportionality: Are there milder measures than immediate termination, such as a rate adjustment?
- Admissibility of the claims: Is the amount of a possible early repayment penalty plausible and correctly calculated?
As soon as the situation has been clarified, a targeted course of action against the termination can be chosen. If, for example, the termination is invalid, a corresponding counter-argument can be formulated and enforced against the bank. Even if everything seems to be formally in order, there is often room for negotiation in order to keep the economic burden low.
Integration of external links
If the bank has already issued a default summons or is threatening to foreclose, it is advisable to seek legal assistance immediately. On our website you will find, among other things, further information on the causes and consequences of a loan termination, which can help you to better assess your situation. It also explains how you can reach an agreement with the bank and which legal levers can be used to achieve this.
How CDR Legal can help you
Contact us without obligation and benefit from your free initial consultation so that we can quickly assess your chances of success. We examine your case with empathy, competence and transparency and only accept cases with a realistic chance of success. You receive full cost transparency before every service. Our lawyers have many years of experience and work with legal precision.
- Free initial assessment: Within two working days, we will analyze your individual situation and inform you about possible costs.
- Free inquiry with your legal expenses insurance: We make the necessary request for cover in order to obtain assumption of costs.
- Make an informed decision: With CDR Legal, you are represented personally and competently so that you always have an overview.
Initial consultation with CDR Legal
Simply fill out the following contact form and we will get back to you promptly for an initial consultation.