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Harrasment by money lenders and depression due to business loss


23-Sep-2023 (In Bankruptcy / Insolvency Law)
My dad is working as a contractor.he started taking loans to meet the business requirements but then after some years our business started getting loss and due to some inner politics between the employer and other members .all the contract of my dad has been stopped and in all those years my dad has taken around 50 lakhs ruppess from 8 to 10 money lenders thinking that he will repay the amount with the bills of the contract.but now the condition is all the contracts have been stopped and we have around 30 lakhs of bills pending but the problem is it will take time to get all this money.ow all the money lenders have came to know about this situation and now they are pressuring my dad by daily coming to our home,verbally abusing and by all this my dad has gone into depression and my family is also not stable..if we calculate interest of that 50 lakhs it will come to around 80 lakhs.so my question is what to do in this situation we can pay only 30 lakhs to the money lenders.
Answers (2)

Answer #1
838 votes
inform them you will file insolvency petition and adjust the money to all lenders with in your budget. if your lenders are bank then you can file a case debt recovery tribunal. insolvency petition is not good because court will sell all your assets and give money to lenders. reputation is at risk. must that is only solution.
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Answer #2
823 votes
You can file an application do declare your dad as an insolvent under the provincial I solvency act 1920 and no demands can be made against your father. However there also repurcussions if this is done. Better to meet and talk

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