Need Advice: Father Trapped in Debt Cycle EMI Exceeds Income

[Proknight9359]

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Proknight9359
PARTICIPANT
March 18, 2025 at 5:39 pm

Hello everyone, I need serious advice regarding my father’s financial situation. He has taken multiple loans over time, and to repay them, he has taken new loans, which has now led to a massive debt trap. His monthly salary is ₹50,000, but the total EMI he needs to pay is ₹43,000, leaving almost nothing for household expenses. I am currently a college student, so I can’t contribute financially yet. We don’t have any assets to sell, and we are struggling to manage even basic expenses. All the loans (around ₹10 lakhs in total) are from banks and NBFCs

Our Main Concerns:
*How can we come out of this debt trap?
*Are there any government relief schemes or legal options for such cases in India?
*Insolvency Petition: How do we file for personal insolvency under the IBC, 2016? How much does it cost?

If anyone has gone through a similar situation or has expert knowledge on this, please guide us. Any help, advice or suggestions will be greatly appreciated.

Thanks in advance!

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[Brightsanjay9083]

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Brightsanjay9083
PARTICIPANT
March 18, 2025 at 5:48 pm

Your father’s situation is tough, but he does not need to jump straight to insolvency proceedings—that is a last resort, and it is costly and complicated. The simplest and most effective solution right now is debt consolidation. He should approach a bank or financial institution for a single loan with to pay off all existing loans. This will reduce his EMI burden and give him a manageable repayment schedule.

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