Asked October 15, 2016

Effect of insolvency petition on family members

  • 1 Answer

Dear all, My father has made several debts at higher interest rates. He was able to pay only the interest for several years. Now he Is unable to pay the debts as the interest rates were very high and if he file insolvency petition, will it effect his family members ( as his son and daughter are public sector employees).

Answer 1

Sir, insolvency of the father in earlier times was considered to be the pious responsibility of

the son to bear. However the 2005 Amendment to The Hindu Succession Act has done away with this belief. In the

new age the children to not have any legal responsibility to the bear the insolvency of their

father. Only if a father dies an insolvent and his property is inherited by his children, then

burden of clearing debts will fall on the children to the extent of the properties inherited by

them. If they do not inherent any properties recovery, cannot be made through the children’s

personal assets.

Apart from this, insolvency of father will not affect his children in anyway.

Agree Comment 0 Agrees almost 5 years ago

Please Login or Register to Submit Answer

Directory ads
Need to talk to a lawyer?

Book a phone consultation with a top-rated lawyer on Lawfarm.