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My dad has expired last year and one of his colleague claims that he had given 5 lakhs and he has a promissory note which is signed by my dad. But there is no witness signature on it. Recently the assets were transferred to my mother with all legal formalities. The lender has sent a lawyer notice to me, mother and my sister. When I searched in google it is mentioned that “ Since there is no collateral for an unsecured loan, property seizure for loan recovery is ruled out. If a person passes away before repaying an unsecured loan, the lender cannot claim unpaid dues from the surviving partner or legal heirs of the deceased.” At the same time they have mentioned as The legal heirs are liable to the lender only to the extent of value/assets, if inherited, from the deceased. If no assets are inherited, the surviving spouse or children have no liability towards the lender. For instance, if the husband leaves behind movable or immovable assets which are inherited by the wife, the creditors can claim all such assets from the surviving spouse in accordance with the law. The court, in such an event, can attach all such assets and the creditors can recover the outstanding amount by selling these after initiating appropriate legal If the surviving spouse has given a personal guarantee to the creditor for fulfilling the obligations undertaken by the deceased spouse, the process of attaching, applying or selling assets of the surviving spouse to recover the outstanding amount can be undertaken by the lender.So please clear my doubt whether lender can claim the money on the property which we have , will it affect us? What should we reply to layer notice?
Question
My dad has expired last year and one of his colleague claims that he had given 5 lakhs and he has a promissory note which is signed by my dad. But there is no witness signature on it. Recently the assets were transferred to my mother with all legal formalities. The lender has sent a lawyer notice to me, mother and my sister. When I searched in google it is mentioned that “ Since there is no collateral for an unsecured loan, property seizure for loan recovery is ruled out. If a person passes away before repaying an unsecured loan, the lender cannot claim unpaid dues from the surviving partner or legal heirs of the deceased.”
At the same time they have mentioned as The legal heirs are liable to the lender only to the extent of value/assets, if inherited, from the deceased. If no assets are inherited, the surviving spouse or children have no liability towards the lender.
For instance, if the husband leaves behind movable or immovable assets which are inherited by the wife, the creditors can claim all such assets from the surviving spouse in accordance with the law. The court, in such an event, can attach all such assets and the creditors can recover the outstanding amount by selling these after initiating appropriate legal If the surviving spouse has given a personal guarantee to the creditor for fulfilling the obligations undertaken by the deceased spouse, the process of attaching, applying or selling assets of the surviving spouse to recover the outstanding amount can be undertaken by the lender.
So please clear my doubt whether lender can claim the money on the property which we have , will it affect us? What should we reply to layer notice?
Answer ( 1 )
The notice should be suitably replied stating that the unsecured loans if any cannot be shifted on the legal heir. whatever you have read online is with regards to loans taken from bank and not from private parties. From the narration of your facts, there seems to be a private loan taken by your father for the reasons which were not in your knowledge. The Legal Heirs here would not be held liable. Reply to the legal notice through a good advocate and if the other party chooses to go to the court seeking recovery of money, they would be required to prove that your father had taken that money and if he is able to prove the same and ur defence is weak, you may be directed by the Court to pay from the inherited assets and not from the personal assests.