Your father can declare himself an insolvent if he is unable to pay the dues
2) contact a local lawyer for taking our proceedings for declaration as an insolvent
Unable to pay the credit
Hello team, I am in need of information or suggestion on the below scenario: My dad and his company partner took a credit 14 yrs back to run a company from a person by signing a agreement . It was not repaid and the case is in Chennai court . Few months back they tried to settle partial amount on the credit in court and he is unable to pay the balance now as he is 64 years. Do u see any option to close this case or claim to court not able to pay back as he is very old with no assets or income. He is mentally stressed at this age and has sugar and Done with angio a year back . Please suggest some ways. Thanks .
Asked 6 years ago in Criminal Law
Religion: Hindu
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12 Answers
By declaring in such a way will there be any adverse punishment for him like sending to jail or anything as such .Thanks again
Asked 6 years ago
1. IF he has "no assets or income", THEN file bankruptcy proceedings in court. This is safe with no after affects, at all.
2. He can continue staying with his childrens.
Your father would not be sent to jail for having declared himself an insolvent
In case she is not able to pay out his debts then the only option is left with him is to go for insolvency and file in solvency petition so that he can be set free from this payment liability the age and other health things are not considerate in this issue.
1. Since he has taken money there is no other option for him except to repay the same.
2. Now as he is aged now without much source of income, he can ask for some leniency so the creditor can restructure the loan and give some discount on the total money to be repaid.
3. In any event your father will have to repay the loan in default of which the creditor is free to take legal recourse against him.
You can file Insolvency Petition (IP) at a district court where you are residing. File an insolvency petition showing reasons for your default in clearing off your debts and show your increasing of liabilities after the loss of your job along with an interim application for stay of your arrest/civil imprisonment till the adjudication of the insolvency petition. Contact a local lawyer and take his help for further process
You can seek Anticipatory bail application in the said matter if any FIR is Registered against your father. You can later go for quashing in HC
Hi,
It is possible that he declares himself as insolvent and get rid of the loan. The company may do the process of insolvency under laws of insolvency and bankrptcy code, 2016 before the NCLT and the things may be settled in this process too.
Declare insolvent, no jail.
They may refer this matter before lok adalat for arriving at a settlement terms in the mediation that is held in the lok adalat.
If it is not settled there, then he may have to raise his hand stating no means to repay the same, let the court decide after ascertaining the facts and circumstances.
The decree holder may seek to arrest the judgment debtor and they may be put to civil prison till the loan amount is repaid, of course the decree holder has to bear all the expenses during their stay in civil prison.
- As per the information mentioned in the present query, makes it clear that the situation is really like something where you dad has not been able to pay intentionally, but due to age and medical condition.
- As per the law, there is no provision wherein a person can get exemption from giving the amount back due to above mentioned reasons.
- But, still there can be a way coming out if pray before the court of law.
- Yes, if declared fit by the government doctors then he may have to go to jail also.
- Otherwise, court would ask his legal heirs for paying the same if they get agreed to it.