Question on a personal loan in the Czech Republic?

T

Traderdc

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Hi - I have a personal loan in the Czech Republic for around €20,000. I am considering defaulting on this loan and walking away from the debt. Does anyone know if there are any implications for my credit in Ireland or where I could find out? Thanks v m
 
Nobody here is going to give you advice on walking away from debt in the Czech Republic or anywhere else.
 
Sunny said:
Nobody here is going to give you advice on walking away from debt in the Czech Republic or anywhere else.
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I don't know about that. It all depends on the circumstances....

To the OP:

The short answer is no, not in the short term. It won't affect your credit history in Ireland. The Irish Credit Bureau doesn't have a record of debts with foreign banks.

The problem might be if the Czech bank feels sufficiently annoyed to register a judgement against you there and then tries to get a European Enforcement Order (EEO) or a European Order for Payment (EOP). It would need to know where you are (i.e. your address in Ireland, which mightn't be that difficult for it to find out).

Then again, I can't imagine a bank going through all of this for €20k.

Why are you considering defaulting on the debt? Are you unable, or just unwilling to repay it? Is it secured? I know it is a personal loan, but was it to finance a small business or was it to finance your lifestyle?

All of these will determine whether or not it is a good idea to walk away from the debt, and how likely the Czech bank might be to chase you for it.

Are you a Czech citizen? Have you family, or other roots there? Are you likely to ever live there again?

That too will have an impact on whether or not you should do this.

You might not want to divulge any of this info, but if you come to a public web forum looking for advice, people are bound to ask for more info so that they can help you properly.
 
Thanks for your reply. The details are as follows: I am Irish and have never lived the Czech Republic. I bought an apartment off plan in Prague in 2007 for the equivalent of €110,000, paid a 5% deposit in cash and got a bridging loan/personal loan for approx 20k to make up the rest of the deposit. The bank who agreed my mortgage also agreed to provide the bridging finance. The agreement is that when I complete on the apartment in September and draw down the mortgage, the bridging loan will be paid back and will be subsumed into my new mortgage. In effect, I will end up with a mortgage for 95% of the purchase price.

The thing is, that since that time in 2007 as we all know - the value of the apartment has fallen dramatically and my own job prospects are very uncertain and I have taken a big pay cut, for these reasons I don't want to complete on the apartment. That means that I am left with the bridging loan which I am considering walking away from. I know that some people may have moral issues with this but at the moment, these issues are not my primary concern.
 
Your bigger problem might not necessarily be the bank - it might be the Czech vendor, who might try to force you to complete the contract on the apartment.

Did you go through an Irish agent to buy this property? Did you have any dealings at all with any Irish-based company, or any Irish-based agent for a Czech company, to buy this apartment? Who arranged the mortgage for you with the Czech bank?
 
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