1) you can make application for restructuring of loan
2) seek time to make payment
3) if you are subject to harassment by recovery agents file police complaint against them
4) contact a local lawyer
Regarding legal help/support for debt repay
Dear Respected Advocate, Herewith I am a businessman, requesting for your best valuable advice for my debt management. I have bought 2 flats from landlord share, 85 percent of work is completed & now the work is stopped, it will get restarted in 2 months (as the project case is in final stage at NCLAT and the new funder has come up to complete the project), and I will be receiving the physical possession of the flats in 3-4 months. Once the work gets restarted I can able to sell one of my flats and clear my debts. I need time from my funders/Banks/creditors for around 4 – 6 months. Please note, till now I was paying minimum payment towards my loans and credit cards and now onwards I cannot able to pay that also. So, I will be getting pressure from my lenders. I need legal protection. I have different types of loans like property loan, car loan, business loan personal loan and credit cards, secured and unsecured multiple loans from banks and NBFC. My question is, can I seek/Sought legal support in this regard, to get the time to repay/ settle my debts. Please advise me.
Asked 2 years ago in Civil Law
11 Answers
Hi
Since you are optimistic of disposing of 1 of 2 flats in next 4-6 months, you can always ask the banks and creditors for one time settlement of loans and waiver of interest for a certain period of time (i.e from date of OTS offer to date of settlement) and proceed to settle the loans later.
Even if banks were to initiate proceedings against you, they have to declare you as NPA only if 3 instalments (90DAYS) remain unpaid and further the banks have the option to withdraw the NPA if the outstanding interest and principal is paid within next 60 days. (i.e90+60 days).
Another alternative could be to file for insolvency in civil court and by the date fixed for finalising creditors by the court, you can always withdraw the petition. This is a slightly risky proposition, but can be resorted to only when you are 100% sure of selling of your property and depositing the money in court within 180 days.
Hope this information is useful.
You need to talk to your banks and NBFCs first explaining your present financial position convincingly. You may seek OTS packages from them. Unless they take recovery steps, you need not precipitate the issue now.
- As per the RBI, the bank should give proper time and offers for the settlement of loan amount., on the ground of health and sudden loss
- If , the bank is not agree to give time, then don’t worry and let them to start legal action against you.
- Firstly, the bank will issue demand notice prior to take legal action from the court, then you can reply the same after narrating the whole story of business failure.
- Even, if the bank filed a case before the Court, you will have much time to repay the said loan amount and to settle the matter according his present situation.
- Further, if the bank official/people are harassing, then you can do the following for his safeguard.
- Lodge complaint at the police station for harassing & threatening , as law not permits anybody to take the law in his hand.
- File an injunction case against the bank and its recovery agents for the direction of not visiting the house or office for the recovery of dues amount of loan.
- You can also file a complaint with the RBI .
You cannot legally claim protection for not paying the loan amount.
You can request the bank/NBFC to restructure the loan to enable you to repay the same at easy installments but cannot claim total exemption from repayment even a temporary suspension of repayment.
You need to talk about the same with bank id they extend the same to you and give you more time. Legally you can only act when you get a notice from bank ans you reply the same
Respected Advocates, Thanks for the answers. Sir, is there really option to take OTS and paying it after 4 months/certain period, please advise. Because whenever I spoke to them regarding OTS settlement, they told me that it should be paid with in a month’s time. As I heard that if I file for insolvency, I should hand over my properties immediately -in short period, But sir, you have mentioned that I can deposit the money in the court within the maximum period of 180 days, after filing the application will I be able sell my property myself and deposit the finalized amount in the court within 180 days. Sir you have mentioned that bank should give sufficient time to repay the loan amount on the ground of health and sudden loss. It is very useful for me, I am around 55 years old and having permanent health issues. Sir The bank/NBFCs have options to go to the arbitration, In arbitration most of the cases will be declared in favour of the banks/NBFCs only, please let me know, if they go to arbitration, in response to that can I go to the civil court or any alternative. Respected advocates, definitely I will go to the advocate, before that I should be knowledgeable to some extent so that I can take decision with my family members & then I can visit a advocate’s office. Hence sincerely I request you to advise me.
Asked 2 years ago
It is not necessary it should be paid on one month time
20 per cent at time of entering into OTS balance in monthly installments spread over one year or so
3) if there is arbitration clause you cannot go to civil court
4) if you opt for insolvency your property vests in official assignee
- You can send a notice as information to the bank to give you some more time as you are facing financial hardship - If , not agree then let them take action against you , as such type of cases come under the civil dispute , and further you can settle with the bank before the court when you will have fund with you .
Yes you can do discussion but dont delay. Approach lawyer asap
If you opt for filing insolvency petition then you cannot sell the property, you may have to show it as assets held by you for compensating the liabilities.
You may give a request for its but it is the discretion of the NBFC to accept your terms.
The NBFC can even reject your request due to the terms that you may put forth.
There's no law forcing NBFC to accept your request.
You cannot sell your property on your own while it is mortgaged for home loan.
If the bank invokes the arbitration clause you cannot approach civil court for any remedy without exhausting your remedies with the arbitrator.
Dear Querist
First of all, you should send a representation to banks for restructuring of your loans and when they reject that representation then you may try to get a One-time settlement with them(OTS) even after finalization of OTS you may get time to repay the settled amount and easily get 4-6 months from the bank and NBFC's in case they are adamant then wait till the declaration of your account as NPA and when they issue notice to you under section 13(2) of SARFAESI Act then you will have right to issue a reply within 60 days from that notice and then only they can take action till then you will have the right to get money after selling the property if any.
In case, they threatened you or used filthy language, or threatened you for legal action then you may also have the right to file a complaint against their misbehavior before the RBI or banking Ombudsmen.
Your ultimate purpose is gaining time to repay and the law is with you if your intention to repay is bona fide.
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