Am I liable to pay my Father's Loan & CC
Querist :
Anonymous
(Querist) 04 February 2010
This query is : Resolved
Two months back my father expired, due to heart attack. He was Retd. from service 2 years ago. He was using Credit Cards and also availed Personal Loan (2 years) which he borrowed from the bank. Last week I received a call from the bank that since I am his son, I have to pay the loan amount as well as the remaining amount of the credit cards used by my father. I did not used any credit cards or taken any loan from banks nor did I used in any way the loan amount (directly or in-directly), which my father borrowed from the bank. My question is this, Can bank held me liable for the amount which my father borrowed..... and can they initiate legal action against me or my family.
He borrowed the money for the different purposes and did own any property whatsoever.
Devajyoti Barman
(Expert) 04 February 2010
Absolutely not. If the bank is not the secured creditor meaning your father had not taken the loan by creation of charge in his immovable property then you have got liability to repay his debt. It is a standard ploy of the Bank.
Yamalapalli Haribob
(Expert) 04 February 2010
IF U ARE HINDUS, IF U R FATHER BORROWED THE MONEY FOR THE BENEFIT OF THE FAMILY, THE BANK IS ENTITLED TO RECOVER THE AMOUNT FROM AND OUT THE ASSETS OF U R FATHER.THE BANK HAS TO FILE SUIT AGAINST THE L.RS OF UR FATHER WITH IN 3 YEARS FROM THE DATE OF BORROWING.BUT UR NOT PERSONALLY NOT LIABLE TO PAY ANY AMOUNT TO BANK.
Sukhija
(Expert) 04 February 2010
I agree with above views.
Guest
(Expert) 04 February 2010
You may ask the Bank(s) to furnish the Loan Applications signed by your father and look into them thoroughly by taking services of an advocate. The terms and conditions of the Credit Card/Personal Loan sometimes absolve your father's liabilities on his death itself, since some banks have tie up with insurance companies to make good the loss. Further find out what are the assets shown by your father in his application forms or any other connected documents. Get a xerox copy of the entire set of documents signed by your father and seek a legal opinion from an advocate who is well versed in Contracts. If the bank refuses to give copies of the documents, file a complaint with a Consumer Forum.
B K Raghavendra Rao
(Expert) 05 February 2010
If your had borrowed loan from the Bank, you become liable to repay the loan as his legal representative. Liabilities of the father passes on to his children. Don't they claim his assets? Why not liability?
You are definitely liable for debts of your father.
Querist :
Anonymous
(Querist) 05 February 2010
Raghavendra Rao Sir,
May I ask on what ground, bank can held me liable (legally) for the liabilities of my father? It does not clarify that " If I can claim his assets then also liabilities ". He didn't had any movable or immovable property.
B K Raghavendra Rao
(Expert) 05 February 2010
You are the legal representative of your father. Liability has to be satisfied. The bank has every right to proceed against LRs for recovery of loan and therefore you become liable to pay his debt. Imagine your father had a bank deposit of Rs. 5 lakhs and died. Would you not have claimed that amount. Would you have left it to the bank saying that you are not entitled for it.
Querist :
Anonymous
(Querist) 19 February 2010
Sir,
Thank you for answering.
But I really need your help.
I've my own family to support and I don't have any golden job which I would be able to pay the creditors which my father borrowed from.
There must be a way out.
Please help me.
