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)


135 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.


Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

255 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.

Popular Corporate Lawyers


Advocate Rajesh Rai
Sector-19, Dwarka, Delhi
19 years Experience
Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
32 years Experience
Advocate Bala Janaki
330 Thambuchetty Street, Chennai
34 years Experience
Advocate Prerna Oberoi
Sector 41, Noida
7 years Experience
278 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

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Corporate Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or contact a Lawyer of your choice to address your query in detail.

Related Questions


"LawRato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."



Related Articles