Legal Question in Credit and Debt Law in India

Unable to repay loans

Hi,

My father has debts of about 10 lakhs through various banks in form of credit cards or personal loans. He had a secure job when he had taken these loans however has no source of income now. Can you suggest how we handle this situation as we are being harassed by recovery agents and calls from banks ?

He has intentions of repaying the loans but has no asset or money to repay right now.

Someone suggested insolvency .. what would the implications be and what could be some other solution to this ?

Please help we really need some way to go further.

Thanks


Asked on 2/15/09, 3:05 pm

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

Re: Unable to repay loans

Insolvency is a good idea. The court may permit the insolvent appropriate living expense for him and his family and may permit him to retain a home and other necessities of life; however, all other assets in his name may be sold and the proceeds apportioned to be distributed amongst his creditors. The insolvency continues for a maximum period of 12 years. however, the insolvent may, before expiry of 12 years also, any time get himself discharged by paying off his debts if he is able to get money/income from any other source.

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Answered on 2/15/09, 7:35 pm


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