Well, the subject line is very interesting. Isn’t it? Have you ever thought of this before? I wonder if there is a single debt free person left in today’s day and age. In these days, financial obligations are, no doubt, spoiling the strength of people’ spines. Now, when some are succeeding in finding a way out of this bizarre situation, some are going deep into the problem and never finding a way back to return into their normal life.
This immediately calls up our attention to a significant issue: Is a debtor still obliged to pay off his debts if he turns mad? However, you can’t reach a conclusion by experimenting. A debtor my pretend to be mad and wait to see if his creditors pursue him or not. But these types of experiments can prove to be harmful and may summon unfortunate legal consequences.
Well, you have no door open even in such a situation. Whatever your mental state is, you have to pay off your debt. We know from our experience that creditors can do anything to recover their money and sometimes can even take the ugly road. Therefore, don’t pretend to be mad and never try to avoid paying your outstanding debt accounts as this will only make the situation worst.
If there is a co-signer on the account, he will be responsible for the repayment of the debt in case the primary debtor goes mad. Therefore, always think twice before co-signing anybody’ loan. However, if the borrower is your immediate family member, or a trusted friend, you can co-sign the debt.
It is obvious that if the debtor is mad and at present is in an asylum, that person is not going to get his monthly bills, creditor calls, and other financial information. If somehow he gets, he is certainly not in a position to understand those. So in such a circumstance, somebody nearest to the debtor (a spouse) has to deal with those documents.
However, for those debtors who have no relatives or friends to handle such a situation may get trapped further. If the debtor borrowed a huge home equity loan and has failed to make payments, he may see his home being foreclosed. However, he will not be in a position to realize the significance of the situation. An insane debtor having someone managing his debts may be in a far better position. If the person is dependable and a well-wisher, he may clarify the debtor’s circumstances to the lenders and may find out a humane way to solve the issue.
To conclude, a debtor is required to pay off his debt under any mental condition. Though assuming any debt relief procedure, a representative of the debtor may resolve the situation, the debtor may not regain his mental stability that the debt caused.
Post by Mr. Craig He writes on many topics such as investment, budgeting and bankruptcy as well as helps people by giving them financial Tips. You can get in touch with him at kevin(dot)craig672(at)gmail(dot)com.