Personal loan and getting a arbitration notice
6 months ago
Sir, I am employee of Delhi metro. And total Liabilities on me almost 25 lakhs. And I can pay Emi's only my salary account personal loan not others. So if I file for insolvency and bankruptcy than what would effect on my job. Even I have not any savings, FD, gold, and property.
I am totally dependent on my salary. Even I manage my all family Liabilities by my salary.
Please suggest me.
A.Dear Client,
Once the EMI against a loan is not repaid for consecutive 3 times by the borrower for any reason whatsoever, it is treated by the Bank as NPA. Accordingly, the Bank sends notice to the Borrower asking him/her for repayment of the entire dues lying against your loan offering suitable terms. In the absence of any response from the Borrower, the Bank starts the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower. Moreover, legal actions may also be taken against you including filing a civil suit in court or initiating criminal proceedings against you. The banks may also make use of debt recovery tribunals in order to recover the dues they are owed from the defaulter borrower. Accordingly, in case you are convicted by a Court of law as a defailter of loans, your service under Delhi Metro will be at stake on the commission of a misconduct as defined under the standing orders or service rules of the Company. Conviction by a Court of Law is a moral turpitude and a ground of dismissal from service. So, before that happens, you can try to negotiate a debt settlement on your own with the Bank, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than the lender Bank, along with any fees. Debt settlement is an agreement between a lender and a borrower/Guarantor in which the borrower/Guarantor repays a portion of a loan balance and the lender forgives the balance. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations of fake entities. So, if you're considering for settlement of dues, the Consumer Financial Protection Bureau(CFPB) suggests contacting your state attorney general's(AG) office and local consumer protection agency to ask if they have any consumer complaints on file about that company.. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward. So far your financial condition is concerned, you cannot not even be eligible to file an application for bankruptcy under the Provincial Insolvency Act, 1920.
Once the EMI against a loan is not repaid for consecutive 3 times by the borrower for any reason whatsoever, it is treated by the Bank as NPA. Accordingly, the Bank sends notice to the Borrower asking him/her for repayment of the entire dues lying against your loan offering suitable terms. In the absence of any response from the Borrower, the Bank starts the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower. Moreover, legal actions may also be taken against you including filing a civil suit in court or initiating criminal proceedings against you. The banks may also make use of debt recovery tribunals in order to recover the dues they are owed from the defaulter borrower. Accordingly, in case you are convicted by a Court of law as a defailter of loans, your service under Delhi Metro will be at stake on the commission of a misconduct as defined under the standing orders or service rules of the Company. Conviction by a Court of Law is a moral turpitude and a ground of dismissal from service. So, before that happens, you can try to negotiate a debt settlement on your own with the Bank, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than the lender Bank, along with any fees. Debt settlement is an agreement between a lender and a borrower/Guarantor in which the borrower/Guarantor repays a portion of a loan balance and the lender forgives the balance. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations of fake entities. So, if you're considering for settlement of dues, the Consumer Financial Protection Bureau(CFPB) suggests contacting your state attorney general's(AG) office and local consumer protection agency to ask if they have any consumer complaints on file about that company.. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward. So far your financial condition is concerned, you cannot not even be eligible to file an application for bankruptcy under the Provincial Insolvency Act, 1920.
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A.Filing for insolvency and bankruptcy should not directly impact your job with the Delhi Metro. The Insolvency and Bankruptcy Code (IBC) primarily deals with resolving financial issues and debt repayment. Your job security is typically not affected by filing for bankruptcy. Since you mentioned that you have no savings, assets, or property, it's essential to work closely with an insolvency professional and a lawyer to understand the best way to manage your debts and protect your income.Your ability to pay EMIs on your salary account personal loan may still be considered during the insolvency process. The IP and the creditors will assess your income and expenses to determine a feasible repayment plan.
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