Guarantor for third person
3 months ago
Hello sir i want to ask about my father who in around 2016-17 with his free will agreed to become a guarantor for someone he knew well enough and that following person borrowed money from 6 Registered CO- OP Societies (Patpedhi's) and my father is the guarantor for all those 6 loans taken by him. But the borrower defaulted on the payments and ran away ultimately vanishing. My dad is supposed to receive his retirement fund cheque from BEST but the management says we first need the NOC's from all these 6 Patpedhis before we can release your retirement fund cheque. I believe those 6 Patpedhis have also lodged a joint complaint against the borrower but I'm not sure if it was against my father as well. Is there any hassle free, simpler, easier and quicker method which we can use to retrieve the retirement fund cheque from BEST without going through court cases, legal proceedings and other mumbo jumbos? Please let me know, Thank you.
A.Dear Client,
A Guarantor holds equal liability for repaying the principal borrower's debt, and if standard recovery measures against the borrower fail, the bank can initiate debt recovery from the Guarantor. In the absence of a Guarantor, their surviving legal heirs may still be held responsible for settling the debt from the inherited assets. While you can request more time for repayment, you cannot evade the liability. Legal actions, including civil suits or criminal proceedings, may be pursued against a Guarantor. Banks might involve debt recovery tribunals and attach the guarantor's property to recover dues. In the given situation, it appears the lender cooperative societies filed a recovery suit before the Debt Recovery Tribunal, prompting the withholding of retirement benefits. Obtaining relief through litigation may be challenging. Consider seeking guidance from a certified credit counselor for a better understanding of your options.
Thankyou
A Guarantor holds equal liability for repaying the principal borrower's debt, and if standard recovery measures against the borrower fail, the bank can initiate debt recovery from the Guarantor. In the absence of a Guarantor, their surviving legal heirs may still be held responsible for settling the debt from the inherited assets. While you can request more time for repayment, you cannot evade the liability. Legal actions, including civil suits or criminal proceedings, may be pursued against a Guarantor. Banks might involve debt recovery tribunals and attach the guarantor's property to recover dues. In the given situation, it appears the lender cooperative societies filed a recovery suit before the Debt Recovery Tribunal, prompting the withholding of retirement benefits. Obtaining relief through litigation may be challenging. Consider seeking guidance from a certified credit counselor for a better understanding of your options.
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A.Dear Client,
A Guarantor is equally liable for repayment of the debt of the principal Borrower and if after exercising all the steps for recovery of debt against the Borrower fails, the Bank takes steps for recovery of debts from the Guarantor attaching the security offered by the guarantor against the loan. Even in the absence of a Guarnator his or her surviving legal heirs are held liable to write off the debt from the asset or property they inherited from the deceased guarantor. Being Guarantor you can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loans for any reason whatsoever. Moreover, legal actions may also be taken against a guarantor including filing a civil suit in court or initiating criminal proceedings against him. The banks may also make use of debt recovery tribunals to recover the dues they are owed from the defaulter borrower by attaching the guarantor's property. In the given situation, in the absence of the whereabouts of the Borrower, the lender cooperative societies have probably filed a recovery suit before the Debt Recovery Tribunal(DRT) seeking attachment of guarantor's property and obtained a stay order over the disbursement of retirement dues until the case is disposed of with an order of attachment and accordingly the lenders served the notice to the BEST to withhold the disbursement of retirement benefits to the guarantor and following the said order/instruction, BEST sought NOC from the Cooperative Societies to release the retirement benefits to your father. So, desired relief in the matter is almost remote even through litigation before the Court. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
A Guarantor is equally liable for repayment of the debt of the principal Borrower and if after exercising all the steps for recovery of debt against the Borrower fails, the Bank takes steps for recovery of debts from the Guarantor attaching the security offered by the guarantor against the loan. Even in the absence of a Guarnator his or her surviving legal heirs are held liable to write off the debt from the asset or property they inherited from the deceased guarantor. Being Guarantor you can make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loans for any reason whatsoever. Moreover, legal actions may also be taken against a guarantor including filing a civil suit in court or initiating criminal proceedings against him. The banks may also make use of debt recovery tribunals to recover the dues they are owed from the defaulter borrower by attaching the guarantor's property. In the given situation, in the absence of the whereabouts of the Borrower, the lender cooperative societies have probably filed a recovery suit before the Debt Recovery Tribunal(DRT) seeking attachment of guarantor's property and obtained a stay order over the disbursement of retirement dues until the case is disposed of with an order of attachment and accordingly the lenders served the notice to the BEST to withhold the disbursement of retirement benefits to the guarantor and following the said order/instruction, BEST sought NOC from the Cooperative Societies to release the retirement benefits to your father. So, desired relief in the matter is almost remote even through litigation before the Court. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
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