Legal Question in Bankruptcy in India

About Credit Card & Personal Loan Default

I have a Loan of 8 Lacs. Now

because of this world's downturn I

lost Job,my monthly installments

are 22000 Rs. of 6 seperate

banks.my profession in a Stock

Markets.Now I hardly get new job

in next 6 months.So tell me what

should I tell Banks & recovery

agents are not in mood to

listen,I'm very feared now day by

day I'm thinking about

that,Sometimes i think about sucide

also.so can i default whole money

or What should I do?


Asked on 1/03/09, 12:29 pm

1 Answer from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: About Credit Card & Personal Loan Default

In a situation like this, one may consider filing an"Insolvency Petition" by impleading all the creditors / banks as defendants, seeking a declaration of insolvency.

Once the petition is admitted, you may stop making payment of the debts; the court will decide about the maintenance amount you should retain out of your income, if any.

You may engage a local lawyer for filing of a petition on your behalf. However, before that, you may inform you banks that you do not have sufficient resources to pay your debts and that you may have to consider the last option of getting a declaration of 'insolvency'.

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Answered on 1/03/09, 3:42 pm


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