Priority on debts

Querist : Anonymous (Querist) 17 February 2022 This query is : Resolved
I was borrowed 1 lakh rupees from one person by year 2012.i borrowed 75000rupees from new person by 2015.i couldn't repay these amount until now. New person has promissory note from me while lending.but first lender don't have any surety from me.my assets value is less than total debt .If new lender approach court to attach my property, first lender will lose chance to attach property.actually he should get justice because he is first lender and amount is bigger than second debt.i am ready to give my property to these people by dividing on debt ratio.but second man claimed full property instead of his amount. So if this guy move a petition, how can I protect first person?

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Quick Summary

This discussion centres on how to prioritise debt repayment when facing multiple creditors and insufficient assets. The user has two outstanding loans, one with a promissory note and another without. Advice suggests filing an insolvency petition in a district court, which will allow the court to determine repayment priority. Alternatively, selling assets to repay debts out of court is also proposed as a way to manage priority.

kavksatyanarayana (Expert) 17 February 2022
You can file an Insolvency Petition in a District Court having jurisdiction where you are residing. Consult a local lawyer to file.

SHIRISH PAWAR, 7738990900 (Expert) 18 February 2022
Hello,

You can file insolvency perition before Trubinal. Insolvency petition has its benefits and disadvantages.

It is the court to decide the repayment priority. If you want to set priority then you can pay out of court by selling property.

Dr J C Vashista (Expert) 19 February 2022
Sell the property and repay loan.

P. Venu (Expert) 19 February 2022
To my understanding, both the debts are time barred!

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