How to legally delay paying debt for few years
My father have some debt of 4-5 Lacks of interest based debt, some amount is on compound interest based also. The debt does not have any loan, all has to pay to single individuals in chunks of amount like 1L and so , who are either material suppliers, or distributors or business friends. Some amount is signed on legal paper and other is just mutual.
The problem is the business is almost broken down, with no improvement can be seen , and due the cycle of take money from someone to pay debt of someone else and purchase materials, and so on, I can see that debt is just getting increased. Seeing my father's mental and physical condition, I want my father to stop doing all this and get retired.
I have recently started my career in software, and with my salary we can cover my families monthly expenses, If we don't have to pay those heavy interests. So what I am thinking is If I can "legally" get few years (2-3) to repay the debt, my income will get 2-3 fold in those years and I can repay the debt. Solving all problems of family.
Is that possible to legally get some time to repay the debt?
Additional info : my father have quite a good rappo (of many years) with all the people to whom we have to pay the debt and they know about my fathers health condition also. So I think It would have be possible that my father just talk with them and ask. But my father is concerned about legal consequences thinking that if we try to ask such think and they will think that we are trying to run from the place , not paying any debt and they might charge criminal complain.
Any advise would be very appreciated.
Asked in Civil Law from Ahmedabad, Gujarat
1)How was loan advanced ?by cash or cheque?
2) creditors need documentary evidence to move court
3) oral commitments are difficult to prove
4) if your father refuses to pay they will have to move court for recovery of dues
5) your father can approach his creditors and seek time to make payment
6) don't sign any documents wherein you or your father agree to pay the said amounts within specified period
7) if there is no evidence of loan advanced nor repayment made it would be difficult for creditors to make out a criminal case against your father
1. Did your father enter into an agreement which specifies the period or date of repayment? If the answer is yes then your father is bound to comply with it. Those who qualify to claim the amount from your father can sue him to recover the amount if he does not honour the agreement.
2. Since your father has a good reputation he should bank upon it to persuade the claimants to reschedule the repayment terms. This is the maximum he may do.
Such type of situations are very common among many people. you are not the isolated case.In fact your father should actually stop borrowing from anyone anymore which may be to ease the pressure of other creditors.
The solution for this is, since you have stated that your father commands respect in the society and also has a god reputation, he should talk to all those creditors personally, gain their confidence and arrange for a peaceful settlement as proposed by you in another two years time and for this he can either execute a pro-note or a loan agreement duly witnessed. This may assure the creditors the confidence about their money and will make them permit you people to go ahead with your proposal which will bring you the relief you needed to tide over the present crisis.
In the situation as mentioned by you there is no criminal offence has been made out against your father, they can file only the civil suit for recovery before civil court after issue a demand notice to your father and this type of civil case will be decide after 5-6 years, so no need to worry, if you are not in position to pay the debt and wants time then first of all talk to them if they amicably agree then ok otherwise if they file the case then also you may get sufficient time.
Advocate, New Delhi