Law4u - Made in India

What is the process for recovering money from a deceased debtor's estate?

31-Mar-2025
Recovery

Answer By law4u team

If a debtor passes away without repaying a debt, the creditor can recover the money from the deceased's estate through a legal process. In India, the Indian Succession Act, 1925 and the Civil Procedure Code (CPC), 1908 govern such recovery. Steps to Recover Money from a Deceased Debtor’s Estate Identify the Legal Heirs or Administrator If the deceased made a Will, the executor named in the Will is responsible for settling debts. If there is no Will, the legal heirs or a court-appointed administrator will handle the estate. File a Claim Against the Estate The creditor must send a legal notice to the legal heirs/executor demanding repayment. If they refuse, a civil suit for recovery can be filed against the estate of the deceased. Legal Proceedings in Court File a suit under Order 37 of the CPC (Summary Suit) for faster recovery. The court may direct the executor/legal heirs to pay the debt from the deceased’s assets. Attachment of Estate Assets The creditor can seek attachment of the deceased’s movable and immovable properties. If the estate has no assets, legal heirs are not personally liable unless they have inherited wealth from the deceased. Insolvency Proceedings (if applicable) If the estate lacks sufficient funds, the court may declare it insolvent, and creditors may get a proportionate share of the available assets.

Answer By Anik

Dear Client, If a debtor dies, the legal heirs of the deceased are not liable for his or her debts but the creditor can claim money from the estate of the deceased i.e. whatever property, money and assets they leave behind. Here are some key steps in the process: 1. The initial step for the creditor to take is to obtain an official death certificate of the debtor. 2. Find out who the legal inheritors of the estate are or find out who the executor of the will is. 3. A legal notice can be dispatched to the successors/executor asking for repayment from the property. 4. If the heirs do not settle the debt, the creditor may file a civil recovery suit against the deceased’s estate under the Code of Civil Procedure, 1908. However, it is important to note that the courts will not order any amount for recovery apart from what can be extracted from the assets left by the deceased. It cannot be from the heirs’ personal property. I hope this answer helps. For any further queries, please do not hesitate to contact us. Thank you.

Recovery Verified Advocates

Get expert legal advice instantly.

Advocate Ravi Pathak

Advocate Ravi Pathak

Anticipatory Bail, Arbitration, Armed Forces Tribunal, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Corporate, Court Marriage, Customs & Central Excise, Criminal, Cyber Crime, Divorce, Documentation, GST, Domestic Violence, Family, High Court, Immigration, Insurance, Labour & Service, Landlord & Tenant, Media and Entertainment, Medical Negligence, Motor Accident, Muslim Law, Property, R.T.I, Recovery, RERA, Startup, Succession Certificate, Tax, Trademark & Copyright, Wills Trusts, Revenue

Get Advice
Advocate Ihtisham Ansari

Advocate Ihtisham Ansari

High Court, Muslim Law, International Law, Insurance, Criminal, Cheque Bounce, Anticipatory Bail, Medical Negligence, Wills Trusts, Revenue, Succession Certificate, Recovery, Property, Landlord & Tenant, Labour & Service, Family, Domestic Violence, Divorce, Cyber Crime, Civil, Consumer Court, Court Marriage, Arbitration, Motor Accident, Child Custody

Get Advice
Advocate Anu Verma

Advocate Anu Verma

Cheque Bounce, Civil, Recovery, Tax, Anticipatory Bail, Divorce, Criminal, Domestic Violence, Family

Get Advice
Advocate Ajit Kumar Jain

Advocate Ajit Kumar Jain

Bankruptcy & Insolvency,Banking & Finance,Breach of Contract,Cheque Bounce,Child Custody,Civil,Court Marriage,Criminal,Divorce,Documentation,Family,Insurance,Labour & Service,Landlord & Tenant,Motor Accident,R.T.I,Recovery,RERA,Succession Certificate,Wills Trusts,Revenue

Get Advice
Advocate Rajuri Ramesh

Advocate Rajuri Ramesh

Anticipatory Bail, Child Custody, Civil, Court Marriage, Criminal, Cyber Crime, Divorce, Documentation, Domestic Violence, Family, High Court, Recovery, Revenue

Get Advice
Advocate Rajindra Soni

Advocate Rajindra Soni

Anticipatory Bail, Bankruptcy & Insolvency, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Court Marriage, Customs & Central Excise, Criminal, Cyber Crime, Divorce, Documentation, Domestic Violence, Family, High Court, Insurance, International Law, Labour & Service, Landlord & Tenant, Medical Negligence, Motor Accident, Property, R.T.I, Recovery, RERA, Startup, Succession Certificate, Wills Trusts, Revenue

Get Advice
Advocate Jayaraj Kp

Advocate Jayaraj Kp

Anticipatory Bail, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Court Marriage, Divorce, Documentation, Domestic Violence, Family, Landlord & Tenant, Property, Recovery, RERA, Succession Certificate, Wills Trusts, Revenue, Bankruptcy & Insolvency, Criminal, Insurance, Motor Accident

Get Advice
Advocate Sharwan Kumar

Advocate Sharwan Kumar

Anticipatory Bail, Arbitration, Banking & Finance, Cheque Bounce, Child Custody, Civil, Consumer Court, Court Marriage, Criminal, Cyber Crime, Divorce, Domestic Violence, Family, Immigration, Labour & Service, Motor Accident, Recovery

Get Advice
Advocate Dilwar Hussain Choudhury

Advocate Dilwar Hussain Choudhury

Anticipatory Bail, Breach of Contract, Civil, Court Marriage, Criminal, Divorce, Domestic Violence, Family, High Court, Labour & Service, Landlord & Tenant, Medical Negligence, Motor Accident, Muslim Law, Property, Recovery, Supreme Court, Wills Trusts, Consumer Court, GST

Get Advice
Advocate Abdul Qayyum

Advocate Abdul Qayyum

Armed Forces Tribunal, Cheque Bounce, Civil, Consumer Court, Corporate, Court Marriage, Criminal, Cyber Crime, Divorce, GST, Domestic Violence, Family, High Court, International Law, Labour & Service, Landlord & Tenant, Motor Accident, Muslim Law, Property, R.T.I, Recovery, RERA, Succession Certificate, Trademark & Copyright, Wills Trusts, Revenue

Get Advice

Recovery Related Questions

Discover clear and detailed answers to common questions about Breach of Contract. Learn about procedures and more in straightforward language.