What to do if brother was running business in fathers name

Respected sir, my dad was influenced by my brother to run his business with the name of my dad as he was doing job and not allowed to do so. In good faith and without the knowledge of such crime my dad permited him and let him run the business on his name. However now he somehow make losses and whole creditors are asking money from my dad. I know it was his fault to allow him but now what should be the remedy? My brother is ready to accept all these things infront of any person or in court also. Is there any legal way that help us. My dad has sold our house and pay the debt ,still there are lot of money remaining to pay. What should be the perfect way to escape from this actual thing? Please do reply

Answers (3)

293 votes

Yes there is a way that we can make this business insolvent as the business was run by the brother so no one can touch you father for more details please contact me on my number so that I will provide you proper answer

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133 votes

you have to exactly elaborate that what kindly of the responsibility your father has handed over to your brother, and your father was signatory of any documents of the business,

and to escape for this all you have to declare your father as indigent / insolvency certificate form the competent court after following due process of law.

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279 votes

First of all let me make one point very clear that you cannot escape from any of the liability incurred, what you need to do is to gradually reduce the liability by paying off the same. You can start negotiations with the creditors and make them believe that you can repay their debts in a span of reasonable time. Your brother accepting all the things in front of anyone will not make the difference, what the creditors wants is the money which is lying with you. You can find a middle way to tackle the situation by drawing consent terms with each creditor and by honouring to such consent terms. Needless to mention that if you are not in a position to meet your assurance, do not give any false assurance to any creditor as that will lead to breach of trust and creditor may take legal action against your father.

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