Father of two children has huge loan on his head both secured and unsecured. unsecured includes multiple personal loans. Have sold off all the properties owned.
1. What is the way out?
2. Children have just started job , can't repay lakhs of loans! If people force children to pay father's loan (which seems not possible as they have to pay all the expenses of home rent, food etc and won't get any help from family in future) , can they say that they are not responsible to pay debts father owed? Is there any law to protect children from this burden?
It is a textbook case for filing Insolvency Petition provided the assets were not alienated/sold just to ensure that there are no assets in the name of the father to escape paying the loans. It is better father files Insolvency Petition if he is genuinely insolvent.
Provided that the Children did not inherit (including some sham sale) any property from their father, debtors cannot proceed against them. Even if the Children inherited some property, their liability shall be to the extent of the value of assets they inherited.
