- This topic has 29 replies, 16 voices, and was last updated 1 year, 1 month ago by
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WI’m a single child and started on my job last year. My mother passed away when I was in college and I was not in contact with father for a long while. My father has a lot of debts where others have stood guarantee for over 20Lakhs. His bank balance at the time of passing is 50,000. His house is on housing loan that has 50Lakhs remaining to be paid. None of which I was aware of. Is there a way to forgo being a legal heir? or does courts can force succession certificate? If i don’t want any part of the inherience or debt – what is the best way to go about it? Thank you
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MYou won’t inherit loans. However banks can liquidate properties you inherit from your father to pay for the loan. So you have nothing to worry about
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WThank you for your response. I understand that is usually the procedure but heard they will go for very low amounts – wonder what would happen if the bank cannot get the loaned amount from its sell? – will it come to me?. Also, there are 7 people who stood guarantee for 7 different loads for a total of 20 lakhs.
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MFirst thing check if your home loan has an insurance, if yes, you won’t have to payback the loan and the property will not be liquidated. You can use the property to pay back other people if you want to
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WI did check with the bank, and they said the home loan doesn’t have insurance. Ideally, I don’t want to touch the property – I heard there are many other unoffical loans he took out from local groups (not from bank) so not sure how far the debts extends. Also thank you for your continued response. I really appreciate it.
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SIf the bank don’t get their money back even after selling their house, it’s their loss. They cannot come after you since your father don’t have anything else in his name.
Basically it is the creditors’ responsibility to assess whether the person has the capacity to repay the loan. If they assess wrongly, it’s their mistake.
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WThank you very much, I hope that is true – That is a big relief. There is also the matter of the 20lakhs that people stood guarntee for. I dont have that much savings to give. I would if I could
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WRandom people that are acquaintances of my father. The banks have valid documents so I know they are actual gurantors. I don’t know any of them but now they are trying to reach out to me.
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FIsn’t housing loan insured.
If it’s insured you are safe , get a family certificate and transfer all the assets under your name.
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CI hope you are not the guarantor on any loans?
Banks will harass you even though legally they have no right too. Please move all your money /lockers from the banks that your father has loans with. The NBFIs are even worse they will call you, send people to your place to pressurize.you but they cannot legally make you responsible for the loans (do not sign any papers without consulting a lawyer).
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Pyour personal liability for your father’s debts is generally limited to the value of the assets you actually inherit from his estate. Since the debts (over ₹70 Lakhs from the housing loan and guarantees) appear to significantly exceed the value of his assets (primarily the mortgaged house), you have the right to formally renounce or relinquish your entire inheritance. Doing so means you won’t receive any assets, but crucially, you also won’t be responsible for the debts beyond what the estate’s assets can cover. It is vital that you do not take possession of, use, or manage any of his assets (like the house or bank funds) as this could be construed as accepting the inheritance.
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S>**housing loan**
You need to check this. Your father must be insured by the bank by a life insurance policy. The house is technically debt free after his death. Please check this.
>**Personal loans + credit card debts + non mortgaged loans.**
No bank or NBFC has right to your fathers bank account or any cash or any property. As the person is no more so the loan doesn’t exist.
>**mortgaged loans.**
This is the only thing, I think you need to worry about.
OP, i know you don’t want anything to do with your father but do not let these banks or NBFC get their hands on that money. It rightfully is yours. You can donate it to charity or widowers of Pehalgam terrorist attack. But do not let those banks get it.
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WIs it true that loans without any collateral, if someone passed away then that loan doesn’t exist? Like shouldn’t their heir have to pay?
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IIf your father had any life insurance then that money will also be first used to clear the loans before being given to you
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SMany banks and finance companies these days, include life insurance coverage with loans. So check with his bank or finance company regarding this. If it exists, you might be able to save the house.
Also get your father’s PAN card and mobile number, and use some service like Paisabazzar to get a CIBIL report. It should help you have an idea of all his debts.
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PIn short, yes. You can “renounce” your inheritance officially. You’re not liable for your father’s debts unless you accept the inheritance. Debts can only be recovered from his assets not from you.
File a Renunciation/Disclaimer of Inheritance via Registered Relinquishment Deed in a sub-registrar office or an Affidavit. Also publish a Public Notice in 2 newspapers (1 English, 1 local language) declaring that you’re not taking up the inheritance.
About the bank loan, bank will simply repossess and auction the house to recover its dues. Unless you’re living in it you’re good, you don’t need to pay anything, probably the guarantors / nominees of the debt will have an issue
Be smart, lots of folks will try 10 different things to you to make you liable for the debt. Don’t sign any bank forms, loan closures or succession applications. Get the renunciation done & keep the records handy.
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