Liabilities of failed business

Kindly think about the following:

(1) Now, either  yourself or his(your son) father-in-law, has to support to your son from get-out from the present financial problems. (2) If any immovable properties stands in the name of your son, alienate or mortgage them and clear off the dues. (3) If not in a position to go for 1 and 2 option, better to file I.P.( Insolvency Petition).

This is a tricky situation. Even if you clear all the loans of your son, what is the guarantee that he will not become indebted again in future particularly when you think that his wife and not he is behind the whole mess. If your son declares insolvency to the tune of Rs.70.00 Lakhs, he will have tough time in restarting his life again because he will have lost all his credibility.Selling your assets to pay the loan is also not advisable because you will lose all your savings. In my opinion, you have to deal as follows :(1) Talk  straight with your son and his wife that you are unhappy with the things and are not in the position to clear the dues.(2) Have a clear idea of his income. If his income is sufficient to pay the principal + interest then you can take a loan by mortagaging your assets. (3) If his income is not sufficient for the full amount, take a loan for the partial amount and balance from your saving. A Rs.70 Lakh loan @13% interest x 4 years will cost about Rs.2.00 Lakh/month to repay(principal+interest). But then ,the EMIs are to be religously paid every month or else  the interest burden alone will smash you.