Debt in family run business

4 years ago

Dear Experts,
Kindly suggest a way out on my family issue which may land me in legal trouble in future if I do not do anything now.

My father who is 61 years of age and is a heart patient, has taken a loan of approx 40 lakhs in past 10 years and suffered huge losses in the family run small shop where my father and his brother (my Chacha) is a co-business owner.

The loans are either taken from individual persons or from private financers on very high rate of interest varying from 4% to 8 % monthly (not annually) and my father himself has provided all the guarantee and blank cheques to the financers. All his earnings are now going only in repayment of interests and the actual principle amount is getting increased day by day.

Now due to family dispute my chacha is asking him to have the shop and business division which wud bring all the unsecured loan on my father's shoulder.

In case of any mis happening the repayment will come on the kids of the loan taker. Kindly suggest a legal way out to overcome the issue so that the loan repayment do not come on the kids

Thanks and regards