https://www.desidime.com/discussions/how-to-deal-with-ancestral-debts?page=1#post_9799501
Almost all of you are seeing this issue as just moral issue. It's lot more than that.
Few key questions to ask yourself before moving forward with making the right decision.
1) How much is the property worth?
2) How much is the debt, in terms of percentage of value of property?
3) Did your ancestor(s) tell you to repay the debt?
4) Do you know for sure the terms of the debt ( like interest rate) and how much was paid off? Did they show you proof of ( bank) transaction or written agreement or any legally binding proof ?
5) How close are you to that relative? What kind of person are they? If you pay off the debt is there a good enough chance they'd loan you money in the future in your hour of need?
In case you don't pay the loan, can they Hurt you or your family in any way?
6) Look at the interest rate they were charging. Was it No interest/ low/ reasonable/ High/ excessive interest...???
Now you decide if they gave loan to help out your ancestor or to make money off their situation by charging excessive amount of interest.
7) Try to understand if the relative was in your shoe would they have paid the loan? Have you heard anything about them that may suggest otherwise?
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I'm not sure How much I should share ... But Here's my personal experience.
My father died over a decade ago. There were people who owned him money and he owed one of our relative some money. He didn't discuss such matters with my mom. But he used to keep records of his monetary transaction in diary or paper ledgers.
After his few months of death many people came claiming he owed them some money from local Tea Shop to close relatives. Most of which could not be verified. But we cleared any and all small amounts. Later we found out most of those claims were either exaggerated or completely false. They took advantage of my mom's trusting nature.
We did find my father's old diary that he owed my aunt lots of money.
Most of which he had given her back.
While my aunt was grief struck after dad's death. She didn't demand a single penny from us as she believed we were not one of the informed parties in the money/ property deals between them so we had minimal responsibility to carry my father's debt burden. She left the decision to us, how much to pay her or when to pay her back, if at all. But her children weren't so kind. They demanded that money when they needed it for their Higher education. We cleared that remaining debt despite financial hardships. About 1 year later we found letters and money order receipt between dad and aunt's husband. Legally admissible proof that my father had actually completely paid off his debt before his death. But we didn't get that money back. My sick aunt had no clue about all this till her death.
Dad's friends and colleague and relatives owed him few thousand rupees in small amounts, we couldn't recover a single penny. Because either they completely denied or claimed they had already paid that back to my father. Even though we had sufficient proof.
OP, So before you decide to anything
Just remember this is a moral, ethical, financial and a legal decision. Act wisely.
We live in a world were some sort of Karma does exist, as the saying
" What goes around comes around."
But we also live in a world where it's said that
" No good deed goes unpunished"
PS: I have learnt it the hard way once is money given, it's very hard to bring it back or take it back.
We live in a world with very unclear rules of engagement. The same attribute can be considered a strength in one situation.... and weaknesses in another.
So @itsmerj005 decide wisely.
-------
@Rajkotian @DaBomb @quantum @suman1993
Few key questions to ask yourself before moving forward with making the right decision.
1) How much is the property worth?
2) How much is the debt, in terms of percentage of value of property?
3) Did your ancestor(s) tell you to repay the debt?
4) Do you know for sure the terms of the debt ( like interest rate) and how much was paid off? Did they show you proof of ( bank) transaction or written agreement or any legally binding proof ?
5) How close are you to that relative? What kind of person are they? If you pay off the debt is there a good enough chance they'd loan you money in the future in your hour of need?
In case you don't pay the loan, can they Hurt you or your family in any way?
6) Look at the interest rate they were charging. Was it No interest/ low/ reasonable/ High/ excessive interest...???
Now you decide if they gave loan to help out your ancestor or to make money off their situation by charging excessive amount of interest.
7) Try to understand if the relative was in your shoe would they have paid the loan? Have you heard anything about them that may suggest otherwise?
------------
I'm not sure How much I should share ... But Here's my personal experience.
My father died over a decade ago. There were people who owned him money and he owed one of our relative some money. He didn't discuss such matters with my mom. But he used to keep records of his monetary transaction in diary or paper ledgers.
After his few months of death many people came claiming he owed them some money from local Tea Shop to close relatives. Most of which could not be verified. But we cleared any and all small amounts. Later we found out most of those claims were either exaggerated or completely false. They took advantage of my mom's trusting nature.
We did find my father's old diary that he owed my aunt lots of money.
Most of which he had given her back.
While my aunt was grief struck after dad's death. She didn't demand a single penny from us as she believed we were not one of the informed parties in the money/ property deals between them so we had minimal responsibility to carry my father's debt burden. She left the decision to us, how much to pay her or when to pay her back, if at all. But her children weren't so kind. They demanded that money when they needed it for their Higher education. We cleared that remaining debt despite financial hardships. About 1 year later we found letters and money order receipt between dad and aunt's husband. Legally admissible proof that my father had actually completely paid off his debt before his death. But we didn't get that money back. My sick aunt had no clue about all this till her death.
Dad's friends and colleague and relatives owed him few thousand rupees in small amounts, we couldn't recover a single penny. Because either they completely denied or claimed they had already paid that back to my father. Even though we had sufficient proof.
OP, So before you decide to anything
Just remember this is a moral, ethical, financial and a legal decision. Act wisely.
We live in a world were some sort of Karma does exist, as the saying
" What goes around comes around."
But we also live in a world where it's said that
" No good deed goes unpunished"
PS: I have learnt it the hard way once is money given, it's very hard to bring it back or take it back.
We live in a world with very unclear rules of engagement. The same attribute can be considered a strength in one situation.... and weaknesses in another.
So @itsmerj005 decide wisely.
-------
@Rajkotian @DaBomb @quantum @suman1993
What exact Debt? From Bank/Institute/Private or from family/friends?
I know someone who got into the very bad debt trap, the person had to leave the city as well. But, his son cleared all the dues as soon as he did start working and his father now roams with all respect between the friends and family.
Try to complete the small debts first, it will boost the confidence of the others.
You can always negotiate at the interest part, sometimes such loans with interest become very difficult to clear. Try to at least clear the principal part.
Few key questions to ask yourself before moving forward with making the right decision.
1) How much is the property worth?
2) How much is the debt, in terms of percentage of value of property?
3) Did your ancestor(s) tell you to repay the debt?
4) Do you know for sure the terms of the debt ( like interest rate) and how much was paid off? Did they show you proof of ( bank) transaction or written agreement or any legally binding proof ?
5) How close are you to that relative? What kind of person are they? If you pay off the debt is there a good enough chance they'd loan you money in the future in your hour of need?
In case you don't pay the loan, can they Hurt you or your family in any way?
6) Look at the interest rate they were charging. Was it No interest/ low/ reasonable/ High/ excessive interest...???
Now you decide if they gave loan to help out your ancestor or to make money off their situation by charging excessive amount of interest.
7) Try to understand if the relative was in your shoe would they have paid the loan? Have you heard anything about them that may suggest otherwise?
------------
I'm not sure How much I should share ... But Here's my personal experience.
My father died over a decade ago. There were people who owned him money and he owed one of our relative some money. He didn't discuss such matters with my mom. But he used to keep records of his monetary transaction in diary or paper ledgers.
After his few months of death many people came claiming he owed them some money from local Tea Shop to close relatives. Most of which could not be verified. But we cleared any and all small amounts. Later we found out most of those claims were either exaggerated or completely false. They took advantage of my mom's trusting nature.
We did find my father's old diary that he owed my aunt lots of money.
Most of which he had given her back.
While my aunt was grief struck after dad's death. She didn't demand a single penny from us as she believed we were not one of the informed parties in the money/ property deals between them so we had minimal responsibility to carry my father's debt burden. She left the decision to us, how much to pay her or when to pay her back, if at all. But her children weren't so kind. They demanded that money when they needed it for their Higher education. We cleared that remaining debt despite financial hardships. About 1 year later we found letters and money order receipt between dad and aunt's husband. Legally admissible proof that my father had actually completely paid off his debt before his death. But we didn't get that money back. My sick aunt had no clue about all this till her death.
Dad's friends and colleague and relatives owed him few thousand rupees in small amounts, we couldn't recover a single penny. Because either they completely denied or claimed they had already paid that back to my father. Even though we had sufficient proof.
OP, So before you decide to anything
Just remember this is a moral, ethical, financial and a legal decision. Act wisely.
We live in a world were some sort of Karma does exist, as the saying
" What goes around comes around."
But we also live in a world where it's said that
" No good deed goes unpunished"
PS: I have learnt it the hard way once is money given, it's very hard to bring it back or take it back.
We live in a world with very unclear rules of engagement. The same attribute can be considered a strength in one situation.... and weaknesses in another.
So @itsmerj005 decide wisely.
-------
@Rajkotian @DaBomb @quantum @suman1993