Credit card default
KRISHNARAO
(Querist) 04 October 2014
This query is : Resolved
Dear Sirs,
At the outset, I thank you all the members of the club and I came to know about the club 2-3 days back only. And I am very happy to know that the club is helping so many people and thus saving so many families across the country.
This is a plea to the highly respected legal community to help me to get out of my present mercy situation and save my family members. I humbly request your good selves to take a few minuets to read the following and advice me in the problem I am facing.
“I have been holding/using 5MNC bank credit cards for over a period of 5-8 years approximately. And holding savings/joint accounts (with my wife) in some of these banks for over a period of 10-12 years. And I have availed loans, balance transfer facilities against credit cards on EMI basis and at present I am paying EMI’s to the tune of 55000/- per month approximately to all banks which includes ICICI, SBI, KOTAK etc.
I have been paying all the EMI’s to all banks without even a single default through all these years. THERE IS NO SINGLE DEFAULT OR CHEQUE BOUNCES in my entire history of all banks in a span of 10 years. But due to drastic deterioration in my CASH INFLOW situation, I am forced into a stagnant situation
At present, as on today I have not paid 2 months EMI’s to two banks. Some of the EMI’s in different banks coming closer i.e. ( for ex : Out of 24 EMI’s 22 EMI’s paid of Rs.2400/-. To another bank I have paid 23 EMI’s out of 24 EMI’s of Rs.5900/-. And to three banks 1 month EMI is pending only. Altogether monthly EMI is 55000/- approx. But at present I do not have a single pie to pay further EMI’s and expecting nothing in the near future to pay. Remaining balance EMI’s in the total period of tenure (3-5 years in future years) coming together (with interest) is around 15 lakhs approx.
Banks themselves gave all the above loans and converted into EMI’s basing on my good repayment track record. AND AS FAR AS MY KNOWLEDGE IS CONCERNED I HAVE NOT GIVEN ANY SURITY/PROPERTY.
At present I am above 50 years old and all of a sudden my wife is bed ridden. And I got health problems. I have lost all the income sources. From October 2014 onwards I don’t have money to maintain my family. So I am unable to pay further EMI’s.
My wife and children (UNMARRIED GIRLS) fear very much about the bank agents. We are spending sleepless nights for the last 3-4 months. And so far I have led above 50 years life respectively in the society. Till to date neither I visited any P.S/ nor stepped in to any court. But all of a sudden this happened. Now I am totally confused about the dire consequences about my future life.
Please advice me in the following:
1) Banks are asking for the immediate payment.I hv. recd some calls asking me whether they send agents. I replied NO. I need a holiday period of 2-3 years. Fearing about the “Banks known illegal practices, I have shifted my residence and not lifting the tele-calls on the advice of my well wishers. I do not update my new residence and ph.number to banks in these 2-3 months. Should I attend phone Calls? Should I inform about change in my address? What are the consequences?
1 A) AS ABOVE CITED, MY CR. CARDS ARE NOT YET PUT UNDER DEFAULT. BUT IT MAY HAPPEN AT ANY MOMENT. BEFORE THAT THING HAPPENS, I WOULD LIKE TO MINIMIZE THE DAMAGE DONE ALREADY. I SINCERELY REQUEST THE RESPECTED LEGAL COMMUNITY TO GIVE ALL SUGGESTIONS AND STEPS TO BE TAKEN IMMEDIATELY SO AS TO AVOID FURTHER DAMAGE. PLS.TREAT THIS AS MOST URGENT.
2) After some time, (may be 2-3 years) when my financial position improves I hope that I can pay a small minimum principal amount to all banks in a single EMI. Is it possible? How to convince all banks about this?
3) Shall I declare Insolvency Petition? What are the consequences? I am worrying about the defamation in the society.
4) How to declare I.P? If I do so, Is it safe. Shall I approach LOK ADALAT? To whom I have to approach? Where I can get justice?
5) Whether my wife and children would be held responsible in future for my present liabilities? What can I do to save my children’s future?
6) As ours is an undivided Hindu family till to date, what would be the impact of my present liabilities on my father, mother and brother in the near future? What steps could I take now to save them?
7) How to know from banks whether I have given any cheque’s in the long past.
8) If I send all my credit cards to banks Regd. Office for cancellation whether they will accept or not?
Please advice me immediately and save my family.
Last but not least, please excuse me for a lengthy letter and advice me in all the relevant matters. Thus save my family.
THANKING YOU,
Yours sincerely.
Anirudh
(Expert) 04 October 2014
You say that you are a Hindu Undivided Family. Do you mean to say that the HUF has any property?
KRISHNARAO
(Querist) 04 October 2014
Sir,
Thank you for your reply.
I have one brother and sister all are married. Parents are alive. My father inherited a small house and a piece of small land which is not yet divided and distributed among us. So i thought that ours is a HUF.
Please clarify.
Please also give your valuable suggestions immediately on my other queries. Please treat this as most urgent.
KRISHNARAO
(Querist) 04 October 2014
Sir,
As I have stated in my letter I am more worried about queries like How to approach bankers, Whom and how to approach for justice. Once again i request respected legal community to give valuable suggestions on all my queries.
ROHIT SHARMA
(Expert) 05 October 2014
1. Do not go in hiding. Do intimate the change of address and phone numbers. Do meet the bank personnel personally. They may be more prepared to relive you of the
mental tension. They were the one who have had offered such loan and E.M.I. and you stand to perform to an extent possible by you.
2. At the most the banks will file a civil suit for recovery of money and at that time you may ask for the issue to be resolved through lok adalat and thereat you can convince them as on the basis of your regular payment history and seek extended installments of affordable amount.
2. Not many installments are due and hence the bank may reconcile and extend the time limit.
3. Since there is no surety or mortgage given by you the bank cannot declare the loan account on credit cards as N.P.A.
4. Time does change and maybe better and good time may soon follow. Do not go in despair. Things will work out.
KRISHNARAO
(Querist) 06 October 2014
Thank U for ur valuable suggestion
T. Kalaiselvan, Advocate
(Expert) 08 October 2014
