You are not liable for your father personal loans
2) your liability is limited to extent of your inheritance from your father
3) in the event any case is filed against you take the defence that you have not inherited any assets from your brother
Is son liable for fathers personal loans? Credit card, PL, loans from relatives
Dear Members , My father has taken loans to an extent of 30-40 lacs from various sources (Banks /NBFC/ relatives) which he is unable to pay My concerns are .. 1) Will I be liable to repay his loans from my personal Assets (Salary/Bank A/c/ Properties) 2)In some PL from Banks ,T&C states in case the borrower defaults , the promissory notes will be invoked against Legal heirs /Representatives. So what In this case , can the law held me liable for this , even though I am in No way associated with this 3) All the loans are taken solely by my Dad , I haven't signed in any of the papers /Documents. 4) in case of death of the Parent , will I be called of too pay off his loans , even though I or my other family members were not Even aware about this . 5) please guide what to do incase banks /Relatives force me to pay off the loans taken by father , I wasn't even aware about it and and not signed in any of the papers 6) I'm worries about the Point No. 2 , please throw some light on it
Asked 5 years ago in Civil Law
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14 Answers
- Any debt incurred by father can only be recovered out of the share of ancestral property that has accrued to father not from the share of his legal heirs.
- No such term which imposes liability of father on sons is enforceable, same is illegal and against public policy therefore void under Section 23 of Indian Contract Act, 1872.
- So long as you do not sign as surety or guarantor you are safe.
- You are not liable for any debt of father.
- Officially his creditors cannot touch you. if anyone tries to intimidate you complaint to police.
- Your worries are unfounded and groundless. Question 2 is explained with relevant provision of law.
In case any Corpus is pass to the legal hair the legal hair will be responsible for any e unsecured loan in your case personal loan loans against credit card and any other hand loan will become your responsibility will become your responsibility after the death of the subject debtor. In case there is no transfer of assets then son will only be responsible for the maintenance parents.
1. No.
Only he is liable to pay the loan and it's repayment.
2. You probably wouldn't have read the terms and conditions properly, the legal heirs can be held liable only after the lifetime of borrower, that too to the extent of the property inherited by the legal heirs.
3. Hence it becomes his own duty to repay the same.
4. It would be by an order of court to the extent of the property inherited by the legal heirs which belonged to deceased borrower.
5. You can refuse to pay any, you can ask them to approach court on this.
6. My reply is clear
1. No if those were unsecured loan.
2. Pro Notes can not be revoked against the legal heirs even if the borrower gives such consent.
3. Ok.
4. No.
5. Defend the cases as and when filed.
6. Same as above.
Dear sir,
Please note that you cannot be forced into repaying loans that your father has defaulted. You need not worry as there is no liability upon you.
The law only puts the liability of paying loan in case the family member has signed as a surety or guarantor to the loan given. But as you say that you were not even aware of the loan, forget about having any liability.
The bank can't force you either. A careful reading of the terms and conditions will convince you that your liability will only extend to any property transferred to you as matter of legal heirship. IF you own any share in property as being a legal heir, you may not be able to claim it and that can be used to clear the default of loan. Thank you.
1. No, you shall not be liable to repay the loans of your father unless you have inherited his properties.
2 to 6. You shall be liable to repay the unpaid loan amount of your deceased father to the extent of the amount ( or value of the properties) which you have inherited from him
Hello , I have consulted few of the other Lawyers and I have mixed views on this , Some say in T&C of Personal Loan /Credit card , there is an indemnity clause that the legal heirs will have to pay up as Son and father have blood relation and others have advised you need not pay. Please help me with what really is the right thing , as its a great confusion. I have read the T&C of one of the Banks , it says the legal heirs will be liable to pay borrowers debt . It no where mentions " liable only to the extend of assets acquired "
Asked 4 years ago
Liability of legal heirs is limited to extent of your inheritance
you have not signed any agreement wherein you agreed to pay your father debts
1. Son is not liable to pay the debts of father except if he stood as a guarantor or has inherited a property from his father.
2. Any clause in the contract which provides for liabilities to be fastened to son, to which son was not a party in the first place, is not binding on son.
1. Your father can not bind you in repaying the loan availed by him.
2. T & C framed by the Bank can not be a law upon the third party unconnected with the said loan.
3. You shall find it with the SARFAESI Act that the legal heirs of a deceased person is liable to repay his un[aid loan to the extent he has inherited properties/amount from the defaulting Borrower, since deceased.
Dear Sir,
You will only be liable to repay loans -
1) If you have inherited any property, to the extent of that property.
2) If you have stood as guarantor of any loan, ie signed documents and became a guarantor.
3) No T&C can enforce payment by you against your own personal assets/property if you have not yourself accepted such responsibilty.
Thank you
The concept of legal heirs will come into force only upon the death of a person and not during his lifetime.
Therefore considering that your father is living there is no question of his legal heirs or any liability on his children towards the said loans he has taken.
You have state that you have read the T & C of one of the banks whereas it appears you are not aware of the terms and conditions of the bank which had given loan to your father.
Don't get confused or worried about different views or opinions in this regard, if at all you face any problem now, you may ask for the solution to the problem instead of seeking opinions to your imaginary issues.
If you are discussing the real or actual problem here you may get a proper opinion instead of getting a variety of opinions to your vague question.
- Under the Hindu Law, a son is under a pious obligation to discharge his father's debts out of his ancestral property regardless of the possibility that he had not been profited by the debts.
- Further, if the debt is purely personal debt of the father, then it cannot be passed over to the legal heirs.
- Moreover, if you got property of father both movable or immovable properties through inheritance then only, your liability to pay the debs, after selling those inherited property.
1. No , you cannot be burdened to pay the loan taken by your father from your personal assets.
2. No
3. Since, you have not singed any document and a guarantor , then you are not liable for the reimburse the loan
4. Read above reply
5. If you have not got any property or amount after selling fathers property , then personal loan amount cannot be recover from you.
Dear Sir
Now the law is changed and even if you receive assets of your father you are not liable to discharge his liabilities after his death. Secondly those loans being personal loans without any security as such the creditors cannot claim amounts from you after the death of your father. The principle of PIOUS OBLIGATION is deleted from the statute book.
