Is son liable for fathers personal loans? Credit card, PL, loans from relatives
Dear Members ,
My father has taken loans to an extent of 30-40 lacs from various sources (Banks /NBFC/ relatives) which he is unable to pay
My concerns are ..
1) Will I be liable to repay his loans from my personal Assets (Salary/Bank A/c/ Properties)
2)In some PL from Banks ,T&C states in case the borrower defaults , the promissory notes will be invoked against Legal heirs /Representatives. So what In this case , can the law held me liable for this , even though I am in No way associated with this
3) All the loans are taken solely by my Dad , I haven't signed in any of the papers /Documents.
4) in case of death of the Parent , will I be called of too pay off his loans , even though I or my other family members were not Even aware about this .
5) please guide what to do incase banks /Relatives force me to pay off the loans taken by father , I wasn't even aware about it and and not signed in any of the papers
6) I'm worries about the Point No. 2 , please throw some light on it
Asked 3 years ago in Civil Law
Hello ,
I have consulted few of the other Lawyers and I have mixed views on this , Some say in T&C of Personal Loan /Credit card , there is an indemnity clause that the legal heirs will have to pay up as Son and father have blood relation and others have advised you need not pay.
Please help me with what really is the right thing , as its a great confusion.
I have read the T&C of one of the Banks , it says the legal heirs will be liable to pay borrowers debt . It no where mentions " liable only to the extend of assets acquired "
Asked 3 years ago