Question: Five years ago, I took a loan from the bank and paid the instalments regularly. But I have lost my job and cannot pay the instalment to the bank. If the bank decides to file a civil lawsuit against me, will I be obligated to pay since I have no source of income?
I have repaid the equivalent of 90 per cent of the loan value, but the bank says that the repayment rate does not exceed 50 per cent. What is the appropriate action to take against the bank in this case?
Answer: Yes, you will be obligated to pay if the bank decides to file a civil lawsuit against you. But you can apply to the judge of execution to pay in instalments and the judge will estimate your request according to many factors including your circumstances.
As a general rule, if the loan has a fixed or customary date of maturity, the borrower is under obligation to refund it to the lender upon expiry of its period, even if he did not benefit from it. According to Article 721 of the Civil Transaction Code, “The borrower is bound, upon expiry of the loan period, to restitute a thing equal in amount, kind and quality, at the agreed time and place, regardless of whatever change may occur to its value.”
In case the bank filed a case against you, you have to request to transfer the matter to a banking expert in order to recalculate the amounts you had paid to the bank because the burden to prove you’re the amounts you had paid to the bank falls on you according to Article 1 of Federal Decree by Law No. (35) Of 2022, promulgating the Law of Evidence in Civil and Commercial Transactions which states that, “The plaintiff has the right to prove his claim and the defendant has the right to disprove it.”
The expert will check all the payments you have made and thus, you can prove that you have really paid more than the 50 per cent that the bank is claiming.
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