Legal Question in Banking Law in India

Housing loan IP
I worked in IT Sector job and I took the house loan 21lacks and I paying every month 22thousand EMI. Other than house I don�t have any private property expect job and my father retried government employee he has house at its native place which is self acquired property. Now I loose the job because due to Indian economy problem. For this reason i request to the bank manager to stop emi for 3 month, he agreed. For this period I planning to sell my house but this time real estate market was down no one come forward to buy my flat even for loan recovery amount. But the bank given time already left 2 month. Now I have only one month time for paying emi. And I have no other commitments to paying amount expect house loan. For this time am planning to file IP in the court. If I can file the IP what type of effects will be there in future? Pls let me know the suggestions IP process.

Asked on 3/22/09, 1:27 am

2 Answers from Attorneys

J. Radhakrishnan independent Practice

0 users found helpful

0 attorneys agreed

Re: Housing loan IP

There is a restructuring guidelines issued by RBI recently for rescheduling EMIs for those hit by recission which has to be applied and got sanctioned before 31st March 2008. You can get the details by accessing the RBI website. But if u think you cannot pay off even if the debt is restructured, you can apply for being declared insolvent. The house mortgaged will be sold by the Bank as it is a secured creditor. Once you apply for being declared insolvent, you cannot borrow. You will be disqualified from taking any banking job or contesting elections, Until you get discharged in the insolvency proceedings by conducting yourself as per the discipline imposed by court. Consult a local lawyer and proceed.

Answered on 3/22/09, 7:26 am

Mark as helpful