Legal Question in Credit and Debt Law in India

Repayment of personal loan

I have lost my money in stock market, facing finencial problem. as i took loans from different banks now i am unable to repay the EMI. my liabilities are double then my income. i have heard that injunction suit can be filed for this in the court. can i file this suit. and will i get time to repay the loan money. plz help


Asked on 3/20/09, 3:59 am

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

Re: Repayment of personal loan

Your liability is determined not only on the basis of your income but also considering value of your assets.

If your liabilities are more than your assets and cannot be met by selling your assets, you may consider filing an insolvency petition seeking to declare you bankrupt.

The court may first sell your assets and appropriately divide the sale-proceeds amongst the creditors; the balance payments, if any, may be restructured by the court on the basis of your income, leaving sufficient amount for your living.

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Answered on 3/20/09, 7:47 am


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