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Loan default
4 weeks ago
Hi I received a pre cognizance notice from judicial magistrate court to appear in court in a case against me by Axis Bank u/s 138 ni act for defaulting in repayment of my education loan. I don't have any earning currently I am looking for a job. what should I do and will the case effect my career ?
A.Dear Client,
In India, the legal framework for dealing with defaulted education loans is governed by the Negotiable Instruments Act of 1881. According to this act, if a borrower fails to make payments for more than 180 days, the lender has the right to take legal action under Section 138 of the Act. Lenders typically classify borrowers as either “wilful defaulters” or those facing unavoidable circumstances. A wilful defaulter is someone who intentionally avoids repaying their loan despite having the financial capacity to do so. On the other hand, borrowers facing unavoidable circumstances may be unable to repay due to factors beyond their control. Even in cases where borrowers default on their education loans, they still have certain rights that cannot be compromised. These rights ensure fair treatment during the loan recovery process. If the lender repossesses any assets provided as collateral, they must inform the borrower of the sale price evaluated for those assets. This ensures transparency and fairness in the recovery process. In cases where lenders recover more than the outstanding loan amount by selling repossessed assets, borrowers have the right to claim any surplus amount left after settling the debt. There can be serious legal consequences for borrowers who default on their loan obligations which can result in significant financial and reputational damage for the defaulter. But sometimes it's typically managed 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 your creditors/lenders, along with an amount of fees/service charges. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. 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. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for 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. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counselling session with a certified credit counsellor can help you to discover your options and choose the right path forward to settle the debts/loan with the Bank
In India, the legal framework for dealing with defaulted education loans is governed by the Negotiable Instruments Act of 1881. According to this act, if a borrower fails to make payments for more than 180 days, the lender has the right to take legal action under Section 138 of the Act. Lenders typically classify borrowers as either “wilful defaulters” or those facing unavoidable circumstances. A wilful defaulter is someone who intentionally avoids repaying their loan despite having the financial capacity to do so. On the other hand, borrowers facing unavoidable circumstances may be unable to repay due to factors beyond their control. Even in cases where borrowers default on their education loans, they still have certain rights that cannot be compromised. These rights ensure fair treatment during the loan recovery process. If the lender repossesses any assets provided as collateral, they must inform the borrower of the sale price evaluated for those assets. This ensures transparency and fairness in the recovery process. In cases where lenders recover more than the outstanding loan amount by selling repossessed assets, borrowers have the right to claim any surplus amount left after settling the debt. There can be serious legal consequences for borrowers who default on their loan obligations which can result in significant financial and reputational damage for the defaulter. But sometimes it's typically managed 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 your creditors/lenders, along with an amount of fees/service charges. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. 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. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for 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. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counselling session with a certified credit counsellor can help you to discover your options and choose the right path forward to settle the debts/loan with the Bank
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Vidhikarya
A.Dear Client,
Hope this reply answers your query. Firstly, you hve to file counter for the criminal complaint which is registered against you. the defences you have is to claim that you are not in any debt towards the other party, or can claim if your cheque is forged.
Hope this reply answers your query. Firstly, you hve to file counter for the criminal complaint which is registered against you. the defences you have is to claim that you are not in any debt towards the other party, or can claim if your cheque is forged.
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