Payment failure

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A payment failure lies in the economy occurs when a debtor the contractual payments not on time or in part or in whole may provide not. From a legal point of view, it is a service disruption in which the debtor is in default .

General

Payment disruptions are a payment risk for the obligee and arise with the debtor if, in general, in the purchase contract, the buyer does not pay the purchase price or does not pay the purchase price on time ( Section 433 (2 ) BGB ). Payment disruptions occur automatically in the event of non-compliance with contractually stipulated payment dates or payment targets after the calendar date in accordance with Section 188 of the German Civil Code, without the need for a reminder ( Section 286 (2) of the German Civil Code). In the case of all other payment delays that are not specified in the calendar, the obligee must send a reminder after the due date has occurred, which sets the debtor in default (Section 286 (1) BGB). According to Section 286, Paragraph 4 of the German Civil Code, the debtor is responsible for his default, which is assumed in the case of monetary debts , because the principle “money has to be had” applies. In the banking and insurance industry, payment defaults result in the classification as a non-performing loan with the risk of partial or total bad debt default .

Payment disruptions can occur with all economic subjects , i.e. with companies , private households or states as debtors. For companies as debtors with payment problems has vendor to IFRS 7.18 in the financial statements to provide information about payment problems during the reporting period (especially the affected debt service , the book value of the affected assets ).

Continuous obligations

Payment problems are common in continuous obligations ( rental agreement , loan agreement , lease agreement , insurance contract , electricity supply before) made across a longer period of time and cause repetitive regular payment obligations of the debtor. Payment dates are always calendar-based by contract ( credit , leasing , insurance , electricity supply contract) or by law (rental contract: according to Section 556b BGB, the monthly rent is to be paid at the beginning of the month, at the latest on the third working day of the month). If these payment dates are exceeded or the contractually agreed payment amounts are not reached, there is a payment disruption. In the case of continuing obligations, payment disruptions can result from rent / ancillary costs , loan interest / repayments , leasing installments, insurance premiums or electricity costs . The result of the payment problems is a backlog .

Credit risk

Payment disruptions can be an indicator of a debtor's inability or unwillingness to pay . Covenants in contracts, especially loan agreements, are intended to prevent creditworthiness problems. You define key business figures ( debt ratios such as the interest rate or debt service ratio ) which, if exceeded, automatically trigger a loan termination . Art. 178 para. 1b Kapitaladäquanzverordnung (abbreviation CRR) applies to banks a debtor as failed ( English default ) if a substantial part of its debt is overdue more than 90 days. His rating automatically falls to the worst rating code "payment default". Exceptions of 180 days apply to residential and commercial properties and public bodies . Payment defaults (credit institutions, certain creditors leasing companies, telecommunications companies , trade , mail order , rental ) of the Schufa reported that accordingly issued to its members on request information.

Web links

Individual evidence

  1. Wolfgang Boiger, Material Law , 2014, p. 66
  2. Maximilian Hoyer, Development of a Rating System for Debt Collection Claims , 2011, p. 12
  3. Stephanie Beyer, IFRS: Financial Instruments , 2008, p. 125
  4. Robert Chromow, Schufa information from a consumer perspective: Basics and practical questions April 24, 2013