Outstanding payments on my credit cards and loans
Ranbir
(Querist) 27 April 2013
This query is : Resolved
I have not been able to pay any card dues or loan accounts post 2008 and I have informed all the banks about my financial misfortune but the banks used to send recovery agents to my house and they have harrased me a lot also which I have informed the banks about.
Advocate M.Bhadra
(Expert) 27 April 2013
No need to proceed for Insolvency,generally Banks does not prefer to file any suit for credit cards dues,settle the matter with the bank.
In India there are two statutes which govern the laws of insolvency. One is Presidency Towns Insolvency Act, 1909. This Act is applicable to three Presidency Towns namely – Calcutta, Madras and Bombay. The High Court of Calcutta, Madras and Bombay has the jurisdiction to try the Insolvency proceedings under this Act. The second Act is Provincial Insolvency Act, 1920 and it is applicable to all parts of India except the three above towns; and the District Courts has the jurisdiction to try the Insolvency proceedings under this Act.
For the passing of an order of insolvency, all the properties of the insolvent, wherever situated, shall be vested in the official Assignee, for its realization and distributed among the body of creditors. One of the important effect of vesting is that the insolvent cannot deal with his property. No buyer from the insolvent can get a good title.
Instituting Insolvency proceedings may be very effective way of instilling a healthy fear in the minds of dishonest debtors that if they do not pay the debt, they may be adjudged as an insolvent.
Insolvency is a proceeding, wherein on the alleged “act of insolvency” committed by the debtor, the possession of property of a debtor is seized up for the benefit of the body of creditors, generally by an officer appointed for the purpose by the Court.
R.K Nanda
(Expert) 27 April 2013
consult local lawyer.
ajay sethi
(Expert) 27 April 2013
please clarify whether after 2008 you have paid any credit card dues ? whether you have in writing acknow ledged your liability to pay said dues? whether bank has taken any recovery proceedings aginst you till date .
if answer is no to 3 queries raised claim of bank would be barred by limitation
prabhakar singh
(Expert) 29 April 2013
Well you answer first queries raised by Mr.Sethi.
