Legal Question in Bankruptcy in India

No money to pay loans

I am in serious trouble after losing my job I am unable to pay my Personal loan dues & credit card payments which amounts to Rs 10,00,000.

Now the bank collections agents are harassing me for the payments.

I don't have any money to pay them & don't have anything to sell and settle the amount.

Please do advice me if applying for Insolvency will save me from this problems.

Please do let me know what will be the consequences I & my family will have to face after declaring myself as an insolvent.

I expect your immediate advice on this because the matter is very urgent.


Asked on 6/24/05, 3:27 am

2 Answers from Attorneys
Mahesh T. Pai M. A. T. Pai & Mahesh T. Pai

Re: No money to pay loans

Dear friend,

First, of all, let me congratulate for running up such a huge liability on your credit card, and still loose your job.

While it is possible to esape liability by getting yourselves declared insolvent, you need to show that you did your best to avoid liabilitis and tried your best to pay them. You also need to show that the liabilities were incurred by you for a genuine and reasonable purpose.

You will not be exempted if you spent the amounts lavishly and wantonly. In short, you need to justify to the court on what and why you spent the 10 lakhs on.

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Answered on 6/24/05, 4:18 am
Jayesh Desai Jayesh Desai

Re: No money to pay loans

Ask one of your frinedly creditor to file insolvency against you - then only you can escape the liability.

Your name shall be advertised in news paper, all your creditors will have to file claim with receiver/official assignee - and once you are declared insolvent - one year theraftre you shall be declared solvent and thereafter you can carry on normal life - absolutely personal belogings and your wife's belonging cannot be attached or sold in insolvency.

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Answered on 7/01/05, 12:14 am


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