Recovery of loan after demise of guarantor

Ashraf Ali khan (Querist) 03 January 2016 This query is : Resolved
Sir , I WOULD LIKE TO ASK YOU DOES THE RECOVERY OF LOAN STAYS AFTER THE DEMISE OF GUARANTOR IN FINANCIAL MATTERS. THE GUARANTOR DOES NOT HAVE ANY PROPERTY OF HIS OWN NOR THE OFFSPRINGS HAVE INHERITED ANYTHING.IS IT LEGAL TO RECOVER FROM THE CHILDREN EVENTHOUGH IT IS EARNED BY THEM. PLEASE GIVE YOUR VALUABLE SUGGESTIONS AS WE HAVE LOST THE CASE AT ALL LEVELS. THANKS

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Kumar Doab (Expert) 03 January 2016
Generically speaking; The debt can be recovered from the estate.

However your lawyer well versed with facts of the matter and personal laws applicable, can advise you the best.

Rajendra K Goyal (Expert) 04 January 2016
Any claim of the financial institution for recovery from legal heirs of the deceased guarantor in the given conditions has to be opposed in the court by providing full particulars.

K.S.Srinivas (Expert) 05 January 2016

After the demise of the guarantor, his legal heirs are liable to pay for the amount their deceased father stood guarantor for. The legal heirs liability to discharge the guarantee is limited to the amount of the guarantee or the amount inherited by the legal heirs of the deceased guarantor, whichever is less.
Since the legal heirs did not inherit any property from the deceased guarantor, they are free from any liability on this unpaid loan account.