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Am I going to payback the loan of my late father?
- Thread starter Kross
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You are not obligated to pay the loan of your late father. It is the responsibility of the bank to make sure that they had secured the loan properly.
Well, you would have to pay the loan on behalf of your father but the bank needs to be considerate to give you enough time to pay up. my cousin though paid for his late father.
King Belieal
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As for me, I won't pay anything. I don't have any business with them. That's one of the risks that happens in business and they should take the loss. And we won't use any of the estates to pay the loan.
You just have to pray that your father didn't leave any collateral with them because if he did then they would have to auction it to get their money.
Actually the bank try to ensure they get their money back, so some documents signed during the process are very crucial
My point exactly, banks don't things blindly they might have been some binding agreement so they would have to recoup their money
When a person dies, his liabilities die with him. If he had committed some properties as collateral for the loan, that is fair and fine. If he didn't, like some microfinance banks give loans without security, that's their loss.
Maybe the best bet would be you asking questions and getting the right answers from them to find out the details of the debt so that you settle with them amicably
These are few of reason due to which I always write against loan. First of all one have to pay interest on loans and finally he pays much more money than original amount. The loan never stop mostly with person's death. Conform further from different sources.
eLdavis
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It depends on the kind of transaction that went on between your late father and the bank, especially in a situation where he had dropped something as collateral.
That's right in some cases the loan never ends even in the death of the collector. The lender will still go after the family for payment
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It's quits once the loaner passes away. That bank is a liar, the loaned money is insured when something bad occurs like the death of your father. Dunno if it's the same in my country the loan balance is considered paid once the debtor dies. Don't pay or see a lawyer.
As far as l am concerned when someone dies with a loan the insurance settles that down.
it differs in other country. Some loans don't come with any insurance policy so the debtor would have to pay back directly.
Unless you are a guarantor, you do not need to repay the loan when your father dies. The bank should take care of this bad debt.
