Payment and settlement act , section 25
6 months ago
So due to 8 months of unemployment I had unable to pay the debt and after 3 emi they registered the case on me so , I am now closing my loan fully prior to first hearing . Is there any chance of dismissal of case as I live in mumbai and the agency case is in Delhi . Yesterday only I get notice on mail that one case has filed . What are the consequences please tell in detail
A.Dear
Here are some important points to consider:
Jurisdiction: The jurisdiction where a legal case is filed should align with where the loan agreement specifies or where the lender has a legal presence. If the case is filed in Delhi, it should typically be related to the lender's operations or your agreement with the lender.
Consequences of a Case: When a case is filed against you, it can lead to various consequences, including a legal judgment against you, which may result in wage garnishment, freezing of bank accounts, or other actions to recover the debt.
Settlement: If you have the means to pay off the loan in full, it is generally in your best interest to do so before the case proceeds further. Settling the debt may prevent a judgment against you, and it may also be less damaging to your credit history than a judgment.
Dismissal: In some cases, if the debt is fully paid, the lender may decide to withdraw the legal action or request its dismissal. This can vary by the lender's policies and the specifics of the case.
Impact on Credit Score: While settling the debt is preferable to a judgment, it may still impact your credit score. A settled debt is generally viewed more favorably than an unpaid debt or judgment, but it may still have some negative impact.
Regards
Here are some important points to consider:
Jurisdiction: The jurisdiction where a legal case is filed should align with where the loan agreement specifies or where the lender has a legal presence. If the case is filed in Delhi, it should typically be related to the lender's operations or your agreement with the lender.
Consequences of a Case: When a case is filed against you, it can lead to various consequences, including a legal judgment against you, which may result in wage garnishment, freezing of bank accounts, or other actions to recover the debt.
Settlement: If you have the means to pay off the loan in full, it is generally in your best interest to do so before the case proceeds further. Settling the debt may prevent a judgment against you, and it may also be less damaging to your credit history than a judgment.
Dismissal: In some cases, if the debt is fully paid, the lender may decide to withdraw the legal action or request its dismissal. This can vary by the lender's policies and the specifics of the case.
Impact on Credit Score: While settling the debt is preferable to a judgment, it may still impact your credit score. A settled debt is generally viewed more favorably than an unpaid debt or judgment, but it may still have some negative impact.
Regards
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A.Dear
So due to 8 months of unemployment I had unable to pay the debt and after 3 emi they registered the case on me so , I am now closing my loan fully prior to first hearing . Is there any chance of dismissal of case as I live in mumbai and the agency case is in Delhi . Yesterday only I get notice on mail that one case has filed . What are the consequences please tell in detail
regards
So due to 8 months of unemployment I had unable to pay the debt and after 3 emi they registered the case on me so , I am now closing my loan fully prior to first hearing . Is there any chance of dismissal of case as I live in mumbai and the agency case is in Delhi . Yesterday only I get notice on mail that one case has filed . What are the consequences please tell in detail
regards
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Helpful
Share
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