I am unable 2 pay the persnl loans i hav taken frm banks..total 7 lakhs . i hav lost all money..no propertys..

Question

I am unable to pay the persnl loans i hav taken frm banks..total 7 lakhs . i hav lost all money..no propertys..
i have loans from 3 banks and 2 credit cards.. all my loans are personal loans... i dont have any bank balance no properties nothing inherritted.. lost money in business.. not expecting money from anywhere...
friends have advised me insolvency petition.. but i dont know what is this and procedure.. dis advantages of insolvency..
wil i be jailed.. now i am working for 20k salary but not enough to pay 40k emi's
i want to restatrt my life.. but bankers are harassing is suicide the only way to restart life in india??? help my family and 3 yr old kids.. my wife is thinking same..
pls tell me the way out
if possible reply with ur contact number or good advocate in chennai
can i get a second innings in life


god help you all

Answer 1

I am a resident of Chennai and know a little bit of law. I have been dealing with recovery cases of Banks. My advice is as follows:-

Stop worrying. If you are completely broke and do not have any property to repay your loan, the bank cannot do anything to you. You cannot be put behind bar, for non payment of your loan, unless you have the necessary means and you have been dodging the bank from making payment. You are not criminally liable.

But, there is a catch in your situation. You said you are a salaried employee. They may try to get a decree from the court, attaching your salary. Even in that event, they cannot attach more than one third of your basic pay. All the allowances are exempt from attachment. Further, for enforcement of the decree, the same portion of the salary cannot be attached for more than 48 months.

Hence, the moral of the story is-

1) Do not lose heart. Give up suicidal tendency.
2) If you have no movable or immovable property, you have nothing to worry. If you have, I would have advised you to enter into a negotiation with the banks and arrive at a settlement so that you may sell these properties which in the current market will get you a good price and after settling your loan account, you will have some thing more for yourself.
3) As regards, the salary attachment, let the law take its own course. You will have some sizable portion of your salary for your livelihood.
4) There are many in life who have come out of such dire financial difficulties. You should be able to survive the psychological pressure that the banks may try to bring to bear upon you.

Answer 2

First thing is, I do not believe, any Banking Authorities will provide loan without any guarantee or proof submission. But this can also be accepted since you have mentioned that it is personal loan. The best suggestion that I could give you is, talk to the Banking Authorities in such a way that you can reduce the monthly EMI's and that would relieve some burden for you. All Banks in India will have some considerations on such situations. So instead of thinking about the Insolvency Petition or Suicide try make use of the above points and Over come this situation soon.

Answer 3

Since you want to restart it all over again, the talk of suicide is foolish and unnecessary.Talk to your very close friends and request them to give you whatever little they can spare for you, as a long term loan.Keep a correct account of all the amounts so received so that you can return the amounts with some compensation, when your condition improves, which it will ,certainly.As and when you get some amounts from friends, go on paying whatever little amount you can , into a Savings Bank Account.Restart that part of your business which you can do with least amount of money, such as selling the finished products or supplying the raw materials etc., Where you can count on past goodwill.Meanwhile, give a commitment to your creditors that you are restarting work and that you are determined to honour your commitments. Give priority to individual small creditors, and then to Institutions.Both these can then give you fresh credit facility . Negotiate with the Bank where you have opened the new S.B. Account. Give them a full account of all the money you owe and request them to consolidate the debt and give you a deferred payment plan.The Bank can pay off the rest of your creditors and pay you some residuary amount as a line of credit to be used in an emergency.Once you start repaying your debts in a steady manner,and have a clear plan of repayment, you will be surprised to find that opportunities for faster payment will soon come your way. Your present troubles are the result of your confused thinking in the past about the debts.

Answer 4

Do not lose your heart. Give up suicidal tendency first .
2) If you have no movable or immovable property, you have nothing to worry. If you have, I would have advised you to enter into a negotiation with the banks and arrive at a settlement so that you may sell these properties which in the current market will get you a good price and after settling your loan account, you will have some thing more for yourself.
3) As regards, the salary attachment, let the law take its own course. You will have some sizable portion of your salary for your livelihood.
4) There are many in life who have come out of such dire financial difficulties. You should be able to survive the psychological pressure that the banks may try to bring to bear upon you.
5) Please contact a Doctor treatment for men tel tent ion.

Answer 5

Do check out the insolvency option. Society has planned for situations for citizens who get into unhappy situations such as this.
Then dont say you have no money as you and your wife have a useful life ahead of you.

You will have to get some help in stopping the interests from growing and then negotiate a settlement.

You can see how much you can earn in the coming years, maybe take a second job, or do some extra work, and EARN the money and pay off the debts.

redit cards and personal loans are very dangerous. Its sad that we have to pay such high interest and when in other countries like USA, the interest rate is very very low, then peple invest the money here and exploit us with debt traps.

Control your greed for material possessions and live frugally but with dignity.

You are not the first person to be in this situation. Many others have been through worse and won. Find strength through prayer also. Seek Divine guidance.

Answer 6

meet bank's Sr. position Manager to use his discritionery power to go for one time settlement and condone the interest portion.
Onec this is done half of your job is done.

Talk to credit card banks that they should allow you to give some time and stop charging interest onm the over due interest amount.

If they help you out then periodically you could pay off. Otherwise you are faced with no other option but to file an insolvancy pition.'

Good Luck for waiving your interest portion. Pl do not meet the jr. officers who are seldom cooperative. the higher bosses have the discritionery power as well as they can definately help you out.

Do not get disharten. even this bad days would be over soon. Only thing required is your sincere efforts with genuine intention

Answer 7

sir,

the only way i think as u are not going 2 use insolvency petition is going to court and tell them how u hav lost your money by showing proof show ur current payslip and ask them that u r seeking refugee from the banks and also u must say tht you hav no no mind of not paying the installments and ask the court to give you time to pay the money.


am a student and this is my advice as my family is also faced a little crisis like this.please go to a good lawyer as fast as you can.

Your delay will be a advantage for banks against you in the court.

Answer 8

sir ,

please don't even think about ending your life . You only live once , so make the most of it .

Why do you want to ake the easy way out ?? think about the welfare of your wife and kids .. What is there fault ?? They don't deserve to live without you ..


I remember a very memorable quote :


" Everybody likes to hear stories about underdogs who over came !!"


It means that if Life throws you Lemons , then make Lemonade . In other words , overcome the obsacles in your path with hard work and strong , iron willed will power.

When God gives you troubles , he also gives you the power to overcome them.
So just look within you , and unleash the power .

You can work day and night , to pay up the EMI's .

I am a sudent (19 years old ) , don't know much about legal procedures , but I know one thing : THAT YOU CAN DO ANYTHING , YOU SET YOUR MIND ON MAN !!!!

GOODBYE and GOD BLESS YOU and YOUR FAMILY !!!!

ALL THE BEST !!!!

Answer 9

I feel sorry for your situation but don't loose hopes. 7 lakhs is not a big amount and you have to contact the right people. First discuss with your employer and ask them for advice. Talk to your colleagues and friends. Above all talk to a lawyer. You can ask for police protection in case you are afraid of any thereats.

You have not committed any crime. If you look at the positive side, convert this as an opportunity by calling the media and test the power of democracy and your right to live.

Good luck and God bless you.

Answer 10

Well, you check in some firms like Jawahar Rojgar Yojna and similar. I heard they give loan without any mortgage and Guarantee and first 2 or 3 years you do not need to pay any emi and the rate of interest is far less than any bank. They give 12+ years to refund the sum, so you check it yourself.
I pray for your well being.
Good Luck.