Clarification on credit card debt & business loan debt
Jatin Pandya
(Querist) 17 May 2012
This query is : Resolved
Hi,
My Father passed away a week back & while going through his belongings I found that he holds credit cards which he has used. After his death would I be liable to pay the outstanding on these cards or no.
Also my Father had taken a Business Loan against property & was Insured by some Accidental Death Policy. n case of a Natural death can we claim the Policy or does Bank have a provision where they have their own Insurance against the loan so if the person dies they can recover the amount from the Insurance company.
Please advice.
Regards,
Jatin
ajay sethi
(Expert) 17 May 2012
if father had taken buisness loan against policy then the bank will recover the loan amount after death of your father . the insurance plocy wont seve the purpose as it only covers accidential death .
in additionas far as credit card dues are concerned you woild be libale for your father debts if you have inherited any property from your father .
Jatin Pandya
(Querist) 17 May 2012
The Insurance Policy against the Loan reads as Accidental Insurance Policy, however my Dad always said that in case something happens to him, then we would not have to pay a penny, I am not sure if the sales guys sold him the wrong policy...
Also the Property nominee is my Mom after dad....
The Loan amount for the Business loan is around 45,000. There is no way I would be able to pay this amount as we are in a total crysis situastion. Is there a way we could request the ban to lower the EMI amount for 1 or 2 years so I could get a chance to settle down....
Deepak Nair
(Expert) 17 May 2012
Agree with the advise from Mr.Sethi
ajay sethi
(Expert) 17 May 2012
it is necessary toi go through the terms of policy . please go through clauses carefully . does it cover death due to natural causes .
mother is merely nominee of property . you also have share as nominee is only a trustee
Jatin Pandya
(Querist) 17 May 2012
So can we approach the bank and request them that I would like to take over dad's loan however since we have no idea of his business & it will take time to settle, I would want a levy for a year or 2 & reduce EMI amount so we can arrange the money...
SAINATH DEVALLA
(Expert) 17 May 2012
Dear Jatin,
A couple of days back there was a similiar query.Don't bother about the credit card,but you cannot avoid repayment of the loan.Hence approach the bank and tell them your financial problem.They will certainly reduce the interest or charges.
Shonee Kapoor
(Expert) 18 May 2012
These debts would be recoverable from the property of the father.
After these recoveries only the properties would go to the legal heirs.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
