Unpaid loans and other debt liabilities

In order to determine whether or not the unpaid loans and other debt liabilities criterion has been reached, all of person's unpaid liabilities should be taken into account as at 31st December 2011 in such banking services as mortgage and construction loans, consumption loans, financial leasing, study and student's loans, overdrafts, the spending limit on credit cards, and loan interests with a final payment period. The operative leasing amount within the meaning of this law is not considered as being a debt liability.

If a person is a guarantor, then while the person taking the loan is settling their liabilities with the bank, the guarantor is not obligated to complete the property condition declaration. However, in Section 15 of the property condition declaration it is possible to indicate any additional information, which at the person's discretion provides full view about the property condition and transactions to be declared.   

Example

A person has bought a flat on credit, and as at 31.12.2011 the unpaid amount of mortgage loan is 20,000 lats. The person also has a credit card with a credit limit of 1,000 lats (as at 31.12.2011 the amount spent is 255 lats).  When fixing the total amount to be declared, only the unpaid amount is taken into account rather than the total granted limit, ie. 20,255 lats (20,000 plus 255 lats).