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UMy dad had given his friend 7 lakh INR as an investment a while back. In return, he used to receive monthly interest payments, and everything seemed fine. But recently, his friend has fallen into serious financial trouble with debts piling up to around 1–2 crore INR. Now, he’s unable to pay back the principal amount.
The situation has become really complicated. My dad, along with a few other investors who are also owed money, tried to put some pressure on him to recover their investments. He isn’t outright refusing to return the money—he says he will when he can—but considering how deep he is in debt, it feels like an empty promise. The risk of never seeing that money again is huge.
What’s even more worrying is that when the pressure mounted, he started threatening to take his own life if people kept pushing him. This has left us feeling helpless. My dad’s hard-earned money is stuck, but at the same time, we’re terrified that things could take a tragic turn.
What can be done
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AWhat your Dad did was an unsecured loan for interest. Now the borrower is in trouble and can’t pay. So other than filing a claim which will take 25 years to settle, there is very little your Dad can do.
And due to pressure the friend does something drastic and leaves a note with your Dad’s name on it, your Dad will have to spend time with police and even behind bars.
Maybe it is an eye opener. Never lend money to family or friends that you can’t afford to lose.
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HThere’s no discussion about affordability. You just don’t lend money to your family or friends period. It ruins relationship. If a friend/family/relative asks money from you, give it to them and tell them that it’s the only time you’re helping them financially and that the money isn’t a loan. It might sour the relationship a bit but it won’t take a nosedive where the two parties totally start hating each other or one of them ends up taking a drastic decision.
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FThere are enough judgements of the court that asking for repayment of debt cannot be considered abetment of suicide. Also people who threaten suicide rarely do it. Apply as much pressure as possible. Involve other family members of this person. Seize assets if you can.
If the loan was given through banking channel and if there is an underlying contract about monthly interest payment and principle amount then talk to an advocate to file a civil suit immediately. See if this can be turned into fraud and criminal complaint be filed. If the friend can issue a cheque (even post dated) take it. If it bounces that’s a criminal offence.
Good luck.
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U@Op your dad’s friend is from Mumbai? I know someone like your dad’ friend with similar situation.
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UOne of my relatives was also in a similar situation. The borrower ultimately did sucide and named all the lenders in his death note citing harassment ! It happened i guess around 2015-16 and the case is still going on ! So it’s still a big headache for them. I know it’s your hard earned money but if you can forget it then please move on .. that’s the only way possible. Take this as a lesson
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USee if the amount is given in cash then you can’t do anything. But as the op says that the borrower is threatening them with doing suicide then I’ve given you a scenario. Because once your name comes in any case it’ll take ages to get your name out of it.. everybody knows how the judiciary works.
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UOne of my dad’s defaulters did this same technique, he borrowed a lakh from my dad and other people and killed himself and mentioned these people in the suicide note.
My dad had to bribe the police officer in the station to let him go off the hook and had to attend multiple court hearing for this. My dad landed in trouble for lending the money.
So it’s better you go the legal route rather than putting pressure on the guy.
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USame happening with me. I gave my friend 5Lakhs and he lost them all. Now he has no job and whenever I am asking for money, he says I will jump in front of my train and then you can take it from my policy.
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CIf he commits suicide his policy is useless. Insurance policy does not pay if insured commits suicide.
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UFirst check whether he is having any assets like land or gold or any vehicle so that he can sell it and repay your amount. If he is not having anything then better to forget it or else keep trying it
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UYou can’t just file a police complaint for lending money to someone and then u charged interest on it. Only banks and NBFCs can give loans. Individuals cannot give loans.
In case you have given a loan to someone you have to secure it with a cheque that has been paid against an Invoice that you have raised to that person for goods or services. And then you have to deposit that cheque. When the cheque bounces you can go to court with that bounced cheque and start the legal process. I know it’s complicated but this is the one way you can secure yourself for personal loans. This is the way professional money lenders are securing themselves.
If you go to the police and say you lent money to your friend and he is not returning it now they will say “Did u ask us and give the money”?
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EIf you call it a loan but in this case it was an investment. Many private individuals run many private funds and dupe people. If there are many people who were cheated, they can join and file a complaint. It has been known to work before , atleast in TN.
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URead carefully what he has written…
My dad had given his friend 7 lakh INR as an investment a while back. In return, he used to receive monthly interest payments.
Received monthly interest payments means it was treated as a loan and not an investment. If you know anything about business then investments work on profit and loss and not monthly interest.
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CMy suggestion is to talk to the friend and try to get to an agreement like you will give him a year or 2 to recover but after that he needs to clear pay at least his principal. If he go through with the act you are fucked you won’t get your money back plus you will have a criminal case to handle too.
But, under no circumstances lend him any more money. -
CMy suggestion is to talk to the friend and try to get to an agreement like you will give him a year or 2 to recover but after that he needs to clear pay at least his principal. If he go through with the act you are fucked you won’t get your money back plus you will have a criminal case to handle too.
But, under no circumstances lend him any more money unless he has some collateral to give. -
CMy suggestion is to talk to the friend and try to get to an agreement like you will give him a year or 2 to recover but after that he needs to clear pay at least his principal. If he go through with the act you are fucked you won’t get your money back plus you will have a criminal case to handle too.
But, under no circumstances lend him any more money unless he has some collateral to give.
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AAs a someone who is running a business and has seen both sides of being a creditor and debtor, this is my sincere advice.
Your dad made an investment with your friend and by its very nature the investment was an unsecured debt with a promise of returns. For a certain period of time you guys received interests and assuming that the business itself was not a pyramid scheme or chit fund type of business, the promoter was able to perform as per his promises.
However due to some factors, change in market forces, bad decisions or anything in between, the business is now in trouble. This is where unsecured debtors make a mistake of threatening or arm twisting.
You have a few options now:
1. File claims in appropriate courts. This will take a lot of time and effort on both sides. And you will not recover appropriate amounts as a result of this.
2. Talk to the business owner and understand the situation. If there are sincere efforts to recover the money, give it time. You’re anyway going to spend time in courts, might as well do it mutually. Of course, get everything in writing with timelines. Then if everythings fails, you can go to courts. -
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BA civil suit for recovery of money. Approach a lawyer to file a suit before the local civil court. There is an application one can file colloquially called an ABJ. Which is an application for attachment of property by stating that the borrower may run away from his debts.
Additionally, you can also file an application for the borrower’s bankruptcy, essentially liquidating all his assets in order to repay debts, but in that scenario you’d be getting paise on the rupee.
And don’t worry about the threatening to suicide thing at all. As long as you don’t do anything outside of the law, sending notices and filing complaints with the police, etc., isn’t going to get you in trouble for the borrower’s suicide. It’s your right.
For the future, make sure you have a proper written agreement in place for consequences of default in repayment. Ideally with an arbitration agreement, which will cut down on litigation time by a lot, and still be as enforceable as an order passed by a court.
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UYour dad gave an unsecured personal loan, in return for interest. Unsecured loans are inherently risky. Ask your dad how much interest he was charging the friend.
Generally, interest rates for such loans are quite high; anywhere between 18-24% per annum or sometimes more.
The high interest rate is precisely due to higher risk of default; since higher risk demands higher reward.
Now that the friend is insolvent and has defaulted; you have no option but to wait and hope for him to pay you back.
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UYour dad sounds like a loan shark but the way the story is written it seems like your dad is the victim nice writing
Lending money and then threatening the guy when he is at the lowest and asking people for different ideas to torture the guy-
UIts the other way around as my dad not having much knowledge of investment he was most probably going to make a fd but his friend (the borrower) approached him with a scheme where he lends him money which will be invested somewhere by him and my dad will receive passive income as monthly interest and as the interest rates were high my dad most probably ignored the risk in greed. In my opinion he was manipulated into this
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UAgain, if your dad has been receiving interest and he has recovered a good sum of money on the principal amount, be tolerant and patient. Again, if your dad has recovered more money than the principal amount than be more tolerant and patient.
Instead of looking at being fearful, be grateful that the man is not a cheater rather someone who says he will repay when he can. I trust that he is telling the truth.
Most of us do —Don’t judge that guy for having poor money skills. Judge his money skills.
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UChatGPT answers:
I’m not a lawyer or mental health professional, but I can share some general thoughts and possible approaches based on similar situations people sometimes face. In a scenario like this—where a debtor is under severe financial stress and hinting at self-harm—there are multiple layers to address: the legal/financial side of things and the humanitarian side.
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1. Encourage Professional Help for Your Dad’s Friend
Mental Health Intervention: The immediate concern is that he’s threatening to harm himself. Regardless of the money owed, it’s critical that someone at risk of suicide gets help.
Encourage him (or his family) to see a mental health professional: a psychologist, psychiatrist, or even a trusted counselor in his community.
If possible, reach out to his close family or friends (other than your dad and the investors) so they can step in and support him.
If at any point you believe the threat of self-harm is imminent, consider involving crisis helplines or, in extreme cases, the local authorities/ambulance services for immediate intervention.
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2. Legal and Financial Considerations
1. Gather Documentation:
If your dad hasn’t done so already, organize all documents—loan agreements, bank statements showing the transfer of the 7 lakh, any written contracts, text messages, or emails referencing repayment terms or interest.
Even if the agreement was informal, any proof of payment or acknowledgment of debt strengthens your position legally.
2. Explore an Amicable Resolution (First Attempt):
Propose a restructured repayment plan rather than demanding the entire sum at once. This might involve smaller installments or an agreed-upon schedule that he can manage.
Sometimes, showing a willingness to cooperate and reduce the pressure can prevent him from feeling cornered. This doesn’t guarantee you’ll get all your money back quickly, but it might reduce the risk of him “disappearing” or worse.
3. Legal Action (as a Next Step):
Consult a Lawyer: A legal professional in your jurisdiction can advise on your options—filing a civil suit, sending a legal notice, or other debt recovery methods.
Understand that if you go straight into aggressive legal action (e.g., filing a formal complaint or a lawsuit) it may cause additional stress and escalate the emotional side. However, you also need to protect your dad’s interests. An attorney can help you decide the least damaging route.
Group Action: If multiple investors are in the same situation, pooling resources for legal representation can reduce costs and create a stronger negotiating position. But be cautious: a collective approach also may heighten the pressure on him.
If there’s an element of fraud (e.g., if he was never investing the money legitimately), you might look into criminal complaints. But again, weigh the risks. Criminal proceedings can be lengthy and add more pressure.
4. Settlement or Partial Recovery:
In extreme cases, some creditors negotiate a lump-sum settlement for a fraction of the total owed. If his debts are truly overwhelming, consider whether partial recovery is better than no recovery at all.
Any settlement should be documented in a legal agreement, ideally drafted by a lawyer.
5. Insolvency or Bankruptcy (Last Resort):
In some jurisdictions, people drowning in debt can file for personal insolvency or bankruptcy. If your dad’s friend goes down that path, you might become one among many creditors. Recovery in such situations can be minimal or take a long time, but it’s still a structured legal route.
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3. Balancing the Emotional and Legal Sides
Communication: Keep lines of communication open. Maintaining a calm approach—while still being firm that the debt needs to be addressed—may prevent him from feeling completely cornered.
Involve a Mediator: If tension is high, a neutral mediator (could be a respected community member, a retired judge, or a professional mediator) might help facilitate structured conversations without either side feeling attacked.
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4. Practical Next Steps
1. Consult a Professional:
Legal: Talk to a debt recovery lawyer or an advocate who specializes in financial disputes.
Mental Health: If you’re concerned about imminent self-harm risk, encourage him (or his family) to contact mental health hotlines or professionals immediately.
2. Document Everything:
Keep track of every conversation, WhatsApp message, or email about the debt and repayment promises. This history can be invaluable if you ever go to court.
3. Secure Your Dad’s Finances:
Make sure your dad’s other financial affairs are secure, especially if he’s invested in multiple such informal arrangements. It might be a wake-up call to ensure that future investments or loans are well-documented and within a more structured framework (e.g., legal agreements, collateral).
4. Prepare for Different Outcomes:
There’s a chance you may recover partial or all of the amount over time, but also a chance the debt may never be fully repaid. Understanding this mentally and planning for it can help reduce the emotional and financial toll on your family.
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Final Thought
It’s a tough spot: you want to recover what’s owed without pushing someone who’s already unstable to a breaking point. Striking that balance isn’t easy. The main goals are to (1) ensure he gets the help he needs to address his suicidal threats, and (2) protect your dad’s financial interests to the extent possible—preferably with professional guidance.
If at any point you believe he is in imminent danger to himself, do involve mental health professionals or emergency services. And to protect your dad, seek solid legal advice sooner rather than later. While it may feel harsh to go down the formal route, having clarity and a well-thought-out plan often alleviates some of the uncertainty, which can help both parties in the long run.
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