Case Study 1: Personal Debt Programme – (PDP)

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A 32 years old single male from Pune living with his parents, was struggling to pay his EMIs and got himself into a debt trap due to looking after his ill parents and their medical expenses.

His income is only ₹56,000 per month and due to maxing out six credit cards and paying four personal loans EMI, his monthly payments to his creditors rocked to ₹74,896 per month and had to borrow money from family and friends to pay his EMIs. Eventually he started to miss his EMI and thereafter the harassment started from the creditors.

The type of harassment was 30 to 40 telephone calls a day, visits to his parent home while he was at work and verbally abusing and causing a ruckus in the house of the client and threatening the client’s ill parents (age 60 years and 64 years) and screaming and banging on the door of the house.

He had approached us for help with his debts and harassment, then after the initial debt counselling it was discovered that he had no saving and that his only source of income was from his employment. In this case the only suitable product that would assist him in his situation was PDP.

After enrolling onto our PDP it took our panel of Advocates eight weeks to legally stop the creditors harassment. We had also provided legal service in dealing with legal Notices from the creditors and put forward a defence to stop a Order from the Arbitrator to remove our client’s movable goods.

He is currently paying us ₹20,000 per month, which we are paying to all his ten creditors on a pro-rata basis, and all his creditors are accepting payments as per his PDP payment plan.

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