How to receive settlement money of deceased Husband
My aunt's husband died. First considered to be a suicide due to debt problems. Police doubted it to be a murder and case is now under investigation.
Aunt comes to know about all the loan after death from documents recovered from deceased's office. Doesn't know why the loan was taken. Loan was not taken for household purposes, education of children or buying land. One of deceased's friend stood as guarantor for all the loans. Friend informed aunt that total loan amount estimated to be around Rs. 20 lakhs. Friend does not reveal why the loan was taken whether for deceased's use or for friend's use.
After 1 week of death received notice from a bank raising claim on the deceased settlement money ie from gratuity, PF, bonus, pension funds.
Notice from other banks expected to arise further.
What should my aunt do to settle all the loans of her husband?
Would she be personally held liable for the loans of her husband? She was not aware of and has not signed any documents. Other than the husband's settlement money she doesn't have any other means to settle the debts of the banks. What should she do to prevent harassment from banks and other creditors? Her husband was the main wage earner of the family. She has very meager income and would be struggling to maintain her 2 children.
Since the many banks have claim on deceased's salary settlement money, will my aunt have any right over her husband's settlement money.
Also if the death is proved to be a murder, will she be able to claim insurance money from LIC policy of the deceased? Will the LIC policy be also a source to recover the debts by the banks?
The deceased or my aunt doesn't own any property.
What are the available options for her to settle all the disputes without much delay and litigation?