Unable to pay back personal loan

I am currently paying back a large personal loan c. 40k.

WHat happens if i am unable to pay back this loan?
WHat options do the bank have available to them?

I do have assets but am in negative equity.

Presumably my credit rating is affected. What are the consequences of this?

Can I ask with you borrowed €40k for ?
What did you buy with €40k?

In terms of making repayments, if you fail to make repayments the institution which gave you the loan could seek to get a court order against you.
This would mean that your credit rating is immediately affected - you will not be able to access credit from other lenders as well.

My advice would be to try to pay something off that loan.
And speak with your lender, they might be able to make alternative repayment arrangements.

Any missed repayments would be recorded on your credit record with the ICB pretty promptly (presuming of course that the institution you have borrowed from is with the ICB - which is very likely). Court orders could follow an initial effort by them to contact you with regards to payment of debt.

If you are currently finding it difficult to meet the repayments I would take Chas's advice and go talk to the bank - it is cheaper for them to allow you some leeway by restructuring than it is for them to start chasing you for non-payment.

If you cannot agree a repayment plan with your lender you should contact thenearests MABS office for advice. They have recently agreed some kind of protocals with the Banks for dealing with borrowers in difficultly.