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My mother became guarantor in a society loan


02-Aug-2023 (In Recovery Law)
My mother become guarantor in a society loan now the debtor is not paying the loan back so bank sent us a notice to pay on his behalf. Is there any possibility that we can do settlement for the same as we are ready to pay not that amount so can the court do settlement for a lesser amount.
Answers (4)

Answer #1
840 votes
Yes you can always serve a legal notice to them and in that notice you can write to settle the amount to a particular percentage as fixed by you. The bank is usually not in favour of litigation and that's why you can always settle the loan amount. For more legal assistance I am just a call away.
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Advocate Jitender Singh

Adv. Jitender Singh

LawRato Delhi | 1000+ Answers
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Answer #2
669 votes
Yes, there is a possibility of setting this amount by way of negotiations. Also the primary borrower has the main liability to pay the loan, so only in the worst scenario the court can ask you to repay the loan amount. Therefore it's better to defend the case properly to be cautious for any adverse order. Hope this helped you
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Advocate Mohit Rajput

Adv. Mohit Rajput

LawRatoDelhi | 100+ Answers
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Answer #3
613 votes
Dear Client A guarantor is someone who agrees to be responsible for someone else's payment of debt if the latter makes a default on payments of loan. Being a guarantor is not a mere formality to help the borrower, the guarantor is equally responsible for paying off the loan. Unless the guarantee is capped the potential liability of a guarantor is unlimited. Will have to see the loan agreement to guide you further. Feel free to get in touch for further discussions.
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Advocate Abhinav Sharma

Adv. Abhinav Sharma

LawRatoDelhi | 700+ Answers
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Answer #4
724 votes
No, you cannot do a settlement on behalf of the defaulter. Bank will proceed against guarantor if debtor is unable to pay the loan amount. your best option is to pay the bank on behalf of the defaulter and then recover the money from the defaulter by initiating a civil suit for recovery of money. should you have any queries feel free to contact me
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Advocate Kunal Seth

Adv. Kunal Seth

LawRatoDelhi | 700+ Answers
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