Bankruptcy
jimmy
(Querist) 12 March 2013
This query is : Resolved
My brother had taken a loan from a nationalized bank in Mumbai. The bank had mortgaged his residential house as a collateral security against that loan, the house was not on brother's name but on his mother's name.Now he's suffering through cancer and hospitalized and has little chance to get back to his business. In this case, if he files for bankruptcy, can he save his house from being auctioned by the bank? How can he come out of the loans using bankruptcy route?
Kindly advice as early as poss.
Regards
ajay sethi
(Expert) 12 March 2013
how can son mortgage house without mother consent ? if flat was standing in name of mother son cannot mortgage it as collateral security . how did he get original papers of the flat ? contact a local lawyer .
if eh files for bankrutpcy he cannot stop flat from being auctioned unless he mortgaged property without consent of mother . she can object
Raj Kumar Makkad
(Expert) 12 March 2013
The mother might have mortgaged the house as a guarantor for her son's loan. There is no such way to get out of bank loan as the bank can recover the loan from the guarantor in the given case and on non-payment may go for recovery proceeding as per its rules.
prabhakar singh
(Expert) 13 March 2013
Even if he files for bankruptcy, he can NOT save this house from being auctioned by the bank because bank's preferential is already charged over it,declaration ,if any would be tomorrow.
Raj Kumar Makkad
(Expert) 13 March 2013
It is better if one time settlement is made during the life time of the loanee and bank can deal the whole matter leniently keeping in view the condition and thus the house can be saved.
prabhakar singh
(Expert) 13 March 2013
I agree with the last advise given just above it by Mr.Makkad.
Raj Kumar Makkad
(Expert) 13 March 2013
Thanks a lot Mr. Singh for agreeing with me.
