Hello,
when did you took the loan.
and have they send you any notice for recovery of the amount?
regards
I took a PL of 5 lakhs and payed back 2.5 lakhs. Now the total outstanding is 3.8 lakhs. Is there a way I can approach an advocate to negotiate with bank to right off my PL or settle for Rs.50000.
Hello,
when did you took the loan.
and have they send you any notice for recovery of the amount?
regards
In the first place, no lawyer would accept your request for negotiating with your lender for a settlement. It's against professional conduct. You have to approach the lender directly and negotiate a settlement. The present status of your account- whether it's an NPA or not- is not stated. If it is an NPA, request your lender to consider your request in accordance with the RBI norms.
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.
There is no collateral security given by you
if you fail to repay loan bank may reach settlement with you to recover principal loan amount
Currently I am trying for jobs. In a scenario where I file an Insolvency Petition (IP) right now and get a job within two or three months or in future, shall the bank can claim for repayment from my salary?
In case you make default in payment of your personal loan then and the recovery agents will follow you to find out out of you and they will surprise you to make payment but in case of default of payment you can negotiate the amount from the bank which may be less than the total outside but for sure it cannot be 50000 rupees for over 300000 rupees outstanding.
Even in case you get a job Bank cannot take amount from your salary but in case you happy counting the same bank it might be detected from your account
Dear client
You can't negotiate with bank for not paying loan it is not going to happen easily. Bank can file a recovery suit against you in civil court.
There are two ways I can suggest you are
You cant write off the loan through advocate. You can file insolvency petition under insovency & bankruptcy code but after insolvency you will also hane problems in getting jobs. You can just wait and try to repay it slowly or default it and worsen your credit ratio
Yes , bank can ask money from you. For time being ask bank to postponed EMI or reduce to EMI amount to 500 or 1000 rupees per month.
Dear Client,
No bank can not negotiate to the Personal Loan. You have to pay the PL amount and follow the Loan Agreement.
1. See you can contact the bank through advocate or personally and can ask them for settlement or rescheduling the loan though it is solely on the bank to take the decision.
See you can file insolvency under the Provincial Insolvency Act you need to file statement of your income debt and properties see since your debt is less it would be not wise to file same as it shall effect your credit score in the long term.
- No, you cannot negotiate with the Bank to right off your PL , even with the support of an Advocate. Bank will never consider your request.
- Futher, it is not easy to get an Insolvent Certificate from the Court of law after filing Insovency Peition.
- Your query is not compelete , as you have not given the exact date of taking PL.
- The limitation period of recovery is limited to 3 years from the date of sanctioning the loan or the last payment - - Bank will file the suit for recovery within the period of limitation or will use your issued cheques for the said prupose.
- Better to negotiate with the official of the Bank for settlement after narrating your financial hardship OR
- Let , them file the case against you. You can settle the amount before the court as well.
Filing for insolvency would be of no use. Even if the bank initiate the recovery proceedings against it is going to take some time to get the decree and then to get it executed.
It is not advisable to file an insolvency petition now. If you are declared an insolvent, you may not be able to borrow any loan from the financial system in future.
An advocate cannot negotiate the matter directly however if there is any lok adalat settlement, you may appear before that and negotiate the settlement to the maximum extent possible.
Bank is not knowing the employment details hence it cannot recover the same through your salary.
The bank can approach court with a recovery suit where you will get time to pay the same in installments as per your request