LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Loan recovery after death of the borrower

Querist : Anonymous (Querist) 02 September 2022 This query is : Open 
If the borrower dies due to some medical/ other reasons, then will the family be responsible to repay the amount? Can anybody with expertise in this field provide contact details for discussion and proper advise.
kavksatyanarayana (Expert) 02 September 2022
Yes. All the legal heirs are responsible for not only assets but also liabilities. You may consult a local lawyer.
P. Venu (Expert) 09 September 2022
The general principle is that the legal heirs are liable to the extent of the estate they have inherited from the deceased.
Querist : Anonymous (Querist) 12 September 2022
Thanks.
Is mother and /or wife responsible for repayment. Family consists of Senior citizen retired pensioner mother ( getting own pension and family pension after father's death ), wife ( not employed) and minor child. Father has already expired few years back and had house in his name which he purchased on his own with no support from the son .
Will of the father for the house is in the name of mother in which the family is staying.
kavksatyanarayana (Expert) 13 September 2022
Even though all the legal heirs are responsible.
Querist : Anonymous (Querist) 13 September 2022
The individual has not supported his parents financially for any expenses or any expenses for purchase of house or any other expenses. So can the family say that and say that they are not responsible for the loan repayment ?
Secondly if the individual has got insurance done by the bank from where the loan has been taken ,then will the bank get the loan repayment done from the insurance company ?
P. Venu (Expert) 14 September 2022
Other than the share inherited in the property which belonged to the late father, had the deceased left behind nay property?
Querist : Anonymous (Querist) 26 September 2022
No he has not left behind any property.
P. Venu (Expert) 29 September 2022
The facts posted suggest that the deceased has left behind any property. As such no recovery is effected from them in their capacity as legal heirs. However, the situation could be different if any of them happens to be the guarantor for the debt.
Querist : Anonymous (Querist) 03 October 2022
Thanks for your response. None of the family members are guarantors for the debt. So in such case wife and mother will not be responsible for the loan repayment?


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now







Post a Suggestion for LCI Team
Post a Legal Query