Dear Concern, I am a salaried person earning Rs:24800/- pm. due to some fianacial issues i have taken consumer durable loans and personal loans from bajaj finserv and capital finance to a sum of Rs:13,00,000(thirteen lakhs) and paying EMI of Rs:1,00,000/-one lakh per month. I trusted a friend of mine and bought a hotel(biriyani centre) for 3 lakhs and to pay him 3 lakhs i have borrowed loan from capital finance and bajaj finance( I bought products and sold it to my friends for cash in a lower price). but i wasa not able to open the biriyani centre because i was not able to finds chef and workers for the hotel and lost the entire 3 lakhs rupees there. Now I am not able to pay the EMI to Bajaj finance and Capital finance as my income is very low when compared to my monthly obligations. I stay in a rented house and can hardly bare my monthly expenses. i just have a second hand 2 wheeler and some basic household stuff with me. Can you pls suggest as to what can i do to avoid the harrasment of the lenders and police. I have paid all my EMI's till last month but this month i am totally broke. Can i claim bankruptcy. I have applied for loans everywhre but do to cibil issues i am unable to get loans anywhere. Please guide me as to what is the best way out. I am not saying that i will not re-pay bajaj and capital finances but i cant pay 1 lakh permonth. I can hardly pay 1 or 2 thousand per month.
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1) request your lenders to reschedule the loan
2) mention that you are unable to repay the loan on account of financial constraints
3) even if lender files recovery proceedings and obtains decree they would not be able to recover any money if you don't have any assets in your name
4) you can take insolvency proceedings to declare your self as insolvent
you can claim bankruptcy either by filing a civil suit for declaration or application before the debt recovery tribunal.
Fist of all being a salaried employee you are bound by the rules that you cannot borrow heavy money especially for business purpose and you cannot carry on business on your name if you are a full time employee. This itself is an offence.
Now, the lender, without verifying your financial status or background or even a collateral security should not have advanced you this amount, but now he may adopt all means to recover the amount from you by due process of law.
As a salary employee you cannot claim bankruptcy or file an insolvent petition too.
The alternate solution is to sit and talk to the financiers for restructuring the loan and its repayment mode and also for possibilities of one time settlement etc.
Legally, as a salaried employee, you cannot claim the desired relief.
