I have been hearing again and again of people driven to suicide by loan collectors or in this peculiar news, defaulters killing their bankers.
But have you noticed one thing in common among all these defaulters…. NONE of them had filed for bankruptcy….WHY?
In a business losing money does not mean that you had embezzled funds.
80% of the business fail due to cash flow problems and those can be over come by talking to bankers to extend the loan, or with the help of a short term loan from friends and family.
rest of the business usually failed as a result of non conducive market scenario and is part of the learning process.
I agree that in traditional societies like India, being fired from the job or failure in your latest venture makes you the center of the town gossip… but who cares about the world… you have responsibility towards your family, your kids and killing yourself/banker does not solve the problem.
Try talking to your banker to extend the loan tenure, sell off some of the assets and see if you start over again… if you still cannot.. then don’t be shy, ask for help… you will be surprised to know it coming from unlikeliest of the places. Friends and family might help you because they know you are a good man. More often then not acquaintance often pinch in. Often its a pure business deal, where they pump in money in return of sale of assets/partnership… sometimes they do it because they have faith in your business skills and they know that this is a temporary phase.. in future you will not only succeed, but will be gratitudeous.
If nothing works, then don’t start your evasive tactics… Declare bankruptcy, take the assistance of the law and discharge your loans and live life honorably.
India has bankruptcy laws dating as old as 1874… and today’s law clearly demarcates the business/company’s assets from the personal assets… it distinguishes between the assets of the family and your assets and has all the features that allows you to write-off the loan once and for all and start again. Once you start the bankruptcy proceedings, the bank will audit you, you might be asked to visit the court/negotiation table a couple of times… but can no longer harass for the dues…
Lastly a quote from Rich Dad, Poor Dad
“Being Broke is temporary, but being poor is eternal”
Ankur Aggarwal
sree
Sandip Chaudhuri
vbr
Skabeesh
shobhendrasrivastava
Hi,
The article is good enough to read. My concern about this article is about the phrase i.e.
India has bankruptcy laws dating as old as 1874… and today’s law clearly demarcates the business/company’s assets from the personal assets… it distinguishes between the assets of the family and your assets and has all the features that allows you to write-off the loan once and for all and start again. Once you start the bankruptcy proceedings, the bank will audit you, you might be asked to visit the court/negotiation table a couple of times… but can no longer harass for the dues…
My question is that if I file for a bankruptcy, would my family assets will effects or just my owned assets will seize.
My situation is worst and I am about to file for a bankruptcy and don’t have any of my own asset. In this condition would my parents assets will effect or not?
I am in this condition because of my foolishness not my parent’s.
Kindly Suggest me the way out ASAP.
Thanks & Regards
Comment by Prakash — September 17, 2009 @ 8:25 pm
only the assets of the person who have either taken the loan or have signed the guarentee will be effected.
Comment by Ankur Aggarwal — September 17, 2009 @ 9:33 pm
My sister and her husband have no job and they have acrrued several lakhs of rupees in debt using personal loan and credit cards. They have no assets. How can they file for bankruptcy and what is the first step.
Comment by Dawn — September 20, 2009 @ 3:31 am
I got a lone from Bank tune of Rs 9 Lac i.e 5 lac in shape of Cash credit limit ( CC Limit) and 4 lac as fixed loan for start up a species unit but unit got failed and for recovery bank filed a case in the Session court. The decided in favour of bank for recovery of Rs 20 Lacs . Now the bank filed for permission to take over the posseion of my house which is laying as gurantee with the bank please guide me but can i do now as I have no even a single painy to repay the loan .
Comment by Rajiv — October 27, 2009 @ 10:24 am
I have got the answer of this question… My question is that if I file for a bankruptcy, would my family assets will effects or just my owned assets will seize. But my question is that is it costly to file for bankruptcy in maharashtra and if it is declaired that i am bankrupt then what is the next step for me can i run the same business which i am running now please suggest me the right answer.
Comment by Nandkumar — November 6, 2009 @ 9:26 pm
My problem is I have accrued loans of rs15 lakhs due to my foolishness of having faith on my relations whom I helped during my good bussiness period ihave no assets but being harassed by allcreditors please guide me
Comment by rajendra — November 13, 2009 @ 1:17 am
One of my friend took loan from govt, pvt and cooperative banks. He does not have any assets whatsoever. Can he file bankruptcy ? i.e. Can an individual file bankruptcy ? or it is only for a company or firm ? Whether in the meantime the recovery agents can harass him. Please reply at the earliest.
Comment by Swaroop — November 27, 2009 @ 2:19 pm
i’ve availed a personal loan of 10 lacs each from 2 banks.I was salaried till feb 09 at a snr level after which i lost my job. After that i tried my luck in shares business in which i lost my money. Now I am unable to pay my PL dues as well as some credit card debt. I am venturing into new business but unable to concentrate on the same due to frequent calls from recovery agents. Can I file for bankruptcy and start new ventures in my name itself. what will be the implications. i need urgent counselling..pl help.
Comment by JB — December 11, 2009 @ 3:35 pm
what are the benefits and drawbacks of declaring Bankruptcy ? what is the procedure for filing the bankruptcy?
Comment by Bhushan — August 31, 2010 @ 11:47 am
sir ,
i m having grt loss in my bussiness and i m not able to pay back the amount to other parties shall i go for the bankrupt as i cant get back my money from the my dealrs as they diidnt pay me back and i also have a personal loan of rs. 4 lac from bank and i m not able to pay it back . sir i ont hav any property and any four wheeler .waht can i do. just advice and how can i go for bancrupcy and wat are the precautions for this
Comment by rajiv — May 14, 2011 @ 5:37 pm
Hi,
Can you tell me what is the procedure for filing for individual or couple bankruptcy in India? How does one go about it?
Comment by Manisha J. Bhattacharya — June 25, 2011 @ 10:08 am
live your life as you are hide rightnow. never use your golden days identity like pancard, driving licence, emailid, mobile nos, even change your kids school. and start new life this only way.
Comment by Anonymous — July 28, 2011 @ 12:04 pm
please anyone let me know the procedure for filing bankruptcy in india and also the implications of it?????
my husband has been running a business for 4 years with the money borrowed from his friends at very high interest and in the intial days since the business was running properly was able to expand and easily pay interest and in the process of expansion was able to raise further funds from others. now the business has started dipping in the last 6 months. due to the goodwill raising funds was not an issue then. now as far as my assessment goes we are deeply in trouble with over 10crores lost and will not be able to return that sought of money and hence we have run away from home and hiding for the fear of people killing us. i have a daughter of 2 years to take care. my husband is working in a supermarket for our livelihood. dont know what to do??? can anyone suggest something????????please
Comment by mrunalini — July 25, 2011 @ 11:53 am