Loans- Parents debt
 
When Vinit's 70 year's old father had a sudden death, life almost stopped for him. Adding to this mental agony of losing the loved one, was the debt taken for meeting up the medical expenses of his father which were confronted by taking debts from the lenders that were now haunting Vinit. 
 
Vinit's father had defaulted on his home loans and personal loan many a times and even had some borrowings from his relatives and friends During his bad times. These cases are not too uncommon and have been in vision from the era times. 
 
The better alternative to these cases is the complete knowledge whether you are able or not to repay the debts of your parent in case of a sudden death.
 
Vinit has his moral duty to repay the loan, but it may not be his legal duty or compliance to do so. He must have a different look at the different situations where he is bounded to pay-off the loan.
 
For Mortgage Loan:
 
In case of a home loan, the child is liable to repay the loan of this parent if only he is the legal heir. A descendent has to repay the loan the amount according the closure agreement of the banks. 
In the above situation, the bank will get in touch with Vinit to transfer the loan to his name. If he is not only the son of his father, then the responsibility can be shared by all the descendants or legal heirs as a joint loan, and all of them will handle the repayment.
 
Vinit and his siblings have to contact the bank person and talk to them for the repayment and the settlement of the loan. However, the banks do not have the right to force them to pay the debt. 
 
However, the banks always have the option to dispose of off the property and auction it to get its amount bank.
 
For Unsecured Loans: 
 
For unsecured loans like Personal Loans or Credit Cards, the banks have all the right to get back the outstanding amount of the loan. From the legal heirs of the deceased. Vinit has to talk to the bank for the repayment of the outstanding amount. In this case, the banks have the right to impose suit to the legal heir to get back its funds. In this case, the heir may need an advocate to safeguard his interests.
 
If no settlement turns out to the bank, the legal procedure may turn to be in favor of the bank, and the legal inheritors may be asked to repay
The debts of their parts. However, the interest rates can be settled if it is found to be a case when the legal heir is genuinely not able to repay the debts, as in the case of Vinit.
 
For Borrowings from Friends and Relatives:
 
In case, the borrowing is from the friends and relatives of the deceased, then the heir is not legally responsible for the repayment of the loan. In this situation, Vinit can not be forced to repay the money if there is no legal agreement for the repayment that has a closure for the heir to repay in case of sudden death of the borrower. 
 
Banks have a legal cell that takes care of all the dispute of this kind. The best way to get rid of this is to negotiate with the bank aAnd taking joint responsibility to repay the loan, in case of multiple heirs. Banks are usually tensile to provide repayment time to the heirs in such cases.