In today’s day and age, financial issues are literally breaking the backbones of common people. While most chalk out a way to deal with their debt issues, some plunge into the deep – and never able to return in a normal life.

This pops up a very significant question: would a debtor be obliged to repay his debts if he goes mad? This is something that you cannot experiment with. However, one may pretend to be insane and wait for the consequences. But such experiments can bring on disastrous legal consequences.

To be very frank, you have to pay off your outstanding debt regardless of your mental state. To get back the money, lenders often walk according to situations and sometimes even take the ugly road. So it is better for a debtor to stay sane and start paying his debts.

If there is a co-signer on the account, that person will be responsible to pay off the balance in case the primary debtor goes mad. Because of this, you should carefully consider before cosigning any kind of loan. In fact, if the borrower is not your family member, you should not agree to sign.

There is no doubt that if somebody is in a mental home, that person is not going to have access to bills, creditor calls, and other financial information. In fact, the debtor is not in a mental position to handle such financial documents. Therefore, in such a circumstance, somebody close to that person (a spouse), should bear the responsibility.

Those people, who do not have a friend or a relative to handle such a situation, may see things getting worse. If the person had borrowed a home equity loan and has many payments left, the mortgage lender would nothing but foreclose the property.

An insane debtor having somebody managing his or her bills is somehow in a better condition. If the personal handling the debt is a reliable one, he may explain the debtor’s situation to the lenders and may find out a humane way to solve the issue.

If we sum up, a debtor is obliged to pay off his debt regardless of his mental condition. Depending on the type of debt, there are many debt relief procedures. If there is somebody who can help manage the process, the debtor may retain his property. However, he may not regain his mental stability that caused due to the financial crisis.

There is no doubt that economic conditions are tough and many people are reaching the brink of insanity while managing their finances. A debtor, however, should keep his composure and continue to make payments as much as possible toward his debt. If possible, a debtor should try to negotiate better terms with his lender as it is much better than running away.

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