Loan surety
4 months ago
My and some of my friends few years ago had signed a surety for loan from a registered chitfund, the one who browed has absconded, the chitfund has notified us that they are going to file a case for recovery and us the surety have to settle since that brower is untraceable. Is there any other option than surety person settling this case. Cane we surety people file a case against the brower.
A.Dear Client,
While the chit fund is notifying you to settle the case, it's crucial to explore legal options. As sureties, you typically assume responsibility if the borrower defaults. However, if the borrower is untraceable, you may consider consulting with a legal professional to understand the extent of your liability and explore the possibility of filing a case against the borrower for defaulting on the loan. Additionally, review the terms of the surety agreement and seek legal advice to assess if there are any avenues to protect your interests or challenge the chit fund's approach. It's essential to act promptly to address this matter and seek legal guidance to navigate the complexities of surety obligations and potential legal actions.
While the chit fund is notifying you to settle the case, it's crucial to explore legal options. As sureties, you typically assume responsibility if the borrower defaults. However, if the borrower is untraceable, you may consider consulting with a legal professional to understand the extent of your liability and explore the possibility of filing a case against the borrower for defaulting on the loan. Additionally, review the terms of the surety agreement and seek legal advice to assess if there are any avenues to protect your interests or challenge the chit fund's approach. It's essential to act promptly to address this matter and seek legal guidance to navigate the complexities of surety obligations and potential legal actions.
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A.Dear Sir,
It is legal for the chit fund to go against either principal borrower or sureties. You have to contest the case and drag on the same for few years and in the meanwhile trace out the principal borrower and try to settle the amount.
It is legal for the chit fund to go against either principal borrower or sureties. You have to contest the case and drag on the same for few years and in the meanwhile trace out the principal borrower and try to settle the amount.
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A.Dear Client,
When you voluntarily make yourself a surety against a loan obtained by a borrower, you cannot escape from the liability of the failure of the principal borrower when he failed to repay the loan. There is no other option open to you other than repayment of the outstanding loan. The lender shall legal action against both the borrower and the surety for recovery of the loan. So, try to negotiate the matter with suitable terms with the lenders failing which you may face legal consequences once the lender knocks on the door of the Court for recovery of the loan.
When you voluntarily make yourself a surety against a loan obtained by a borrower, you cannot escape from the liability of the failure of the principal borrower when he failed to repay the loan. There is no other option open to you other than repayment of the outstanding loan. The lender shall legal action against both the borrower and the surety for recovery of the loan. So, try to negotiate the matter with suitable terms with the lenders failing which you may face legal consequences once the lender knocks on the door of the Court for recovery of the loan.
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