Legal Question in Banking Law in India
We both are working couples. Me and my wife is almost in the verge of divorce and we wanted to settle the car loan we have taken just before marriage. I stood as a guarantor for the loan and car was registered in her name. Our understanding was she is going to pay for the car. She didn�t had enough cheque leafs during the time of loan disbursal so I gave my cheques and bank started deducting loan amount from my account and my wife will transfer the amount from her account. But since the problems started, she stopped paying me the amount and monthly installments continued to be deducted from my account. (She and her folks is using the car now). Now I need to withdraw the guarantee. What needs to be done please? The loan will be ending only by 2012.
4 Answers from Attorneys
Write a letter to the bank that you want to withdraw as a guarantor.
you are saying that you both are on the verge of divorce. you need to talk it out with your wife that you will have to withdraw the guarantee and then try that she consents to the same. you may write to the bank and simply withdraw the guarantee but it may hinder your divorce process. so for small gains you may lose out on bigger gains.
you cannot get away from your liability as guarantor. You have to pay the loan outstandings and ask the bank to transfer their rights over the hypothecated car to you. Settle it with your wife for purchasing peace as you say you are on the verge of divorce.
You may stop payment of cheques; if the bank enforces guarantee against you, you may claim the car and pay off the balance amount.
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