Express your inability to repay the loan
2) mention that you nor your family members have inherited any assets from your deceased father
3) you are liable to pay father debts only to extent of property inherited by you
Repayment of Personal loan after death of father
Dear Sir, My father passed away last month and since then we are getting calls from banks about payment of personal loan on his behalf. My mother is nominee in most of the loans and she has no source of income at all.I am working in a private firm and my younger brother is still studying. There was no will or assets transferred to us from our father, there is just one flat(under construction) allocated to father and for which he had applied for insured home loan. Being in this situation we can not pay the personal loan of approx 12 lacs, request you to kindly suggest on this situation.
Asked 7 years ago in Civil Law
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6 Answers
Thanks Sir, as I mentioned there is one flat allocated to him (without any nominee as of now) that's the only asset he has got and that too hasn't been transferred to my mother on anyone else in the family. Can they claim on this property ? Is there any legal document(Affidavit - Notarised) needs to be submitted by me or my mother to tell banks about the inability to pay loans ?
Asked 7 years ago
On father demise flat would be inherited by your mother , you and your siblings ,
you would need letters of administration from HC or district court
2) apply to the builder to transfer flat in your mother name on basis of NOC issued by you and your siblings
3) if regd sale deed has not been executed apply to builder to execute sale deed in mother name
4) bank will seek to recover loan amount from attachment of the flat and sale to recover the dues
5) letter to bank would suffice
according to section 50 of the CPC, legal heir is liable to pay loan of his father but to the extent of property he receives. if you have not received any property you can not be compelled to pay your father's loan. in your case you mother has received property because she wan nominee. you can file a case before high court on behalf of your mother. you can take time for payment of loan or extend the time for repayment of loan on the ground that mother has no income and you should take some more time for repayment.
1. The heirs of the debtor can be made liable to repay the debts of the deceased debtor only if they have inherited property from him.
2. The flat allotted to your father has devolved through intestate succession on his widow and children if he died without making a will. So the debtors can file a civil suit for recovery of money against the heirs of your father and then apply for attachment of the flat in execution proceedings.
You or your family members are no doubt not liable to repay the personal loans of your father.
If you people would avail his assets or the properties lying on his name, then you may be held for repaying his personal loans too.
If the properties lying in your father's name has not been offered as collateral security, then you may decide to settle the loan after selling the property that is lying on his name after discharge of loan amount.
First of all you have not stated whether the bank has sent you any legal notice asking you to repay your father's personal loan directly.?
If they have sent any such notice you may give a reply notice stating that you people are not responsible for his personal debts and the banks' demand notice is illegal.
The bank would not have sent any notice, even if they send also they may not pursue the matter through court since it is not maintainable.
You may discuss with your lawyer on all such further issues.