
Hi
I am 39 years old married women. I have a son. My husband recently died of heart attack. My husband bought a car 3 years back on loan. We were not aware of this loan as my husband told that it is purchased with full cash. After a month of my husband is expired we came to know that car is on loan. Car was nominated to his brother and loan surety was given by same brother.nearly about 15 days before death the car was met with accident and left in garage. my brother in law took the car from garage and even we asked they didn’t give. there is also car insurance. I am working in a private school and living in a rented house.my husbands younger brother was handling all money matters of my husband. My husband was paying only 4000 rent remaining I used to manage in my money. Me or my son not inherited any of the property nor any money not even a single rupee. From past 6-7 months bank person is calling me and asking to pay the loan. I explained the situation and told to seize the car.but bank person is not agreeing with that and forcing me pay the loan or do the signature and saying that he will send notices. also forcing me to give the car to my husbands brother eventhogh car is already with them. My husband became overdrunker and lost his mental balance 6 to 7 months before dieing because they big clashes and quarrel with his brothers. He was cheated by his bothers in the matters of money and properties.
Now my question is who should pay the car loan. I am not able to pay the loan. Car is not with me . what I can do next?
Ans: I'm sorry for your loss. You're facing a complex financial and legal situation, but there are steps you can take to protect yourself and your son.
Understanding Your Liability for the Car Loan
Since the car loan was taken in your husband's name, the legal responsibility primarily lies with his estate.
The loan guarantor (your brother-in-law) also has a legal obligation to repay the loan if the primary borrower (your husband) is unable to.
You are not automatically responsible for repaying the loan unless you were a co-borrower or guarantor.
Since you and your son have not inherited any assets from your husband, you are not legally bound to pay the loan from your own money.
Role of the Bank in Loan Recovery
The bank can recover the outstanding loan amount from the assets of your husband.
If your husband did not leave behind any assets, the bank cannot force you to pay from your own earnings.
The bank has the right to seize the car and auction it to recover the outstanding amount.
If the car is with your brother-in-law, the bank should deal with him directly, as he was the loan guarantor.
What You Can Do Next
1. Communicate with the Bank in Writing
Write a formal letter to the bank explaining the situation.
Clearly state that:
You were not aware of the loan.
The car is not in your possession.
You have not inherited any assets from your husband.
The loan guarantor (your brother-in-law) should be held responsible.
Send this letter through registered post or email and keep a copy for future reference.
2. Ask the Bank to Repossess the Car
Since the car is on loan, the bank has the right to seize it.
Inform the bank that the car is with your brother-in-law and ask them to recover it from him.
If the bank refuses, remind them that it is their responsibility to recover the asset.
3. Do Not Sign Any Loan-Related Documents
The bank may try to make you sign documents making you liable for the loan.
Do not sign anything without consulting a lawyer.
4. Legal Action Against Your Brother-in-Law
If your brother-in-law refuses to return the car, you can file a police complaint.
The car is not legally his until the loan is fully repaid.
Mention in your complaint that the bank is asking you to repay a loan for a car that is not with you.
Role of Car Insurance in This Situation
Since the car was in an accident before your husband’s passing, the insurance claim should be processed.
If your brother-in-law has already claimed the insurance money, he should use it to repay the loan.
If no claim has been made, check with the insurance company and ensure that the rightful person (the bank) receives the amount.
Protecting Your Financial Future
1. Ensure Financial Independence
You are managing household expenses with your salary.
Create a budget to keep track of your income and spending.
If possible, try to save a small amount each month for emergencies.
2. Check for Any Unclaimed Assets
Check if your husband had any bank accounts, life insurance, or investments.
Contact his employer to check for any pending salary, gratuity, or provident fund.
If he had any LIC or other insurance policies, file claims to receive the benefits.
3. Secure Your Son’s Future
Ensure your son's education and other financial needs are planned.
If you receive any funds (insurance, savings, or benefits from your husband’s employment), invest them wisely.
Dealing with Bank Harassment
If the bank continues to pressure you, escalate the issue to higher authorities within the bank.
File a complaint with the Banking Ombudsman if necessary.
Seek legal advice if the harassment does not stop.
Final Insights
You are not legally responsible for your husband's loan unless you are a co-borrower.
The bank should recover the car from your brother-in-law instead of forcing you to pay.
Do not sign any documents without legal advice.
Take legal action if your brother-in-law refuses to return the car.
Secure your and your son’s financial future by checking for any unclaimed assets and planning wisely.
If you need further assistance, consider consulting a lawyer for legal guidance.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment