Stuck with Someone Else's Debt? Know the Law on Joint Liability
In many cases, individuals find themselves burdened by loans where they were co-applicants or guarantors, even if the primary borrower is defunct or uncooperative. Whether it's a joint home loan after a divorce, a business loan after a partnership split, or a family loan default, DebtCure helps you legally segregate and define your actual liability.
The Trap of 'Joint and Several Liability'
Most bank contracts include a clause for "Joint and Several Liability," meaning the bank can recovery the 100% of the debt from ANY of the co-borrowers or guarantors. This can lead to your bank accounts being frozen even if you paid your "share". Our legal team specializes in challenging these aggressive recovery tactics.
Guarantor Rights in India
According to the Indian Contract Act and recent Supreme Court judgments, a guarantor's liability is not always absolute. If the bank has modified the loan terms without the guarantor's consent or failed to pursue the primary assets first, the guarantor may be legally discharged from the debt.
Our Loan Segregation Services
We map out all active loans, including joint accounts and hidden guarantees, to understand your total legal exposure across all banks and NBFCs.
We issue formal notices to lenders requesting the segregation of liability based on legal settlements, divorce decrees, or partnership dissolution agreements.
We provide legal strategies to shield your personal properties and salaries from being attached for debts where you are not the primary beneficiary.
We negotiate with banks to allow one co-borrower to pay their portion and receive a formal 'Release from Liability' letter, even if the other party defaults.
Why Legal Clarity is Essential
Being a co-borrower on a defaulting loan will destroy your credit score just as much as the primary borrower. Regaining your financial independence starts with legally untangling yourself from someone else's financial mistakes.