I started Travel agency business in 2019 and then pandemic struck owing to which I lost my livelihood. Survived through pandemic with help from family and friends. Come 2022 I decided to get back up on my feet with eagerness. Cibil score was 750+ since i had never defaulted before and had no p-ending loans to my name. So i took some personal loans, used my credit card limits to maximum to start Cloud Kitchen. Since I am not a professional chef, I hired a consultant in that capacity. In total, the project took 8 months to materialise (delayed by 5 months) which added financial strain in form kitchen rent and salaries and other overheads, but i kept paying my EMis by adding even more personal loans. I was pretty confident that I will be able to make enough sales to be able to pay Emis. But it all backfired. I was left with no working capital in the end or money for marketing. Finally i had to shut down business to cut further losses. And now i have defaulted on all my EMI committments for personal loans and credit card dues. I have no source of income, No assets and no way to pay my EMis. I have emailed all my creditors to grant me a moratorium for 3 months so I can pick myself up and get employed, so i can start paying again. But most of them have refused. I am getting harrasing calls everyday. I am in Debt Trap and I do not know what to do and how to get out of it. I am bankrupt. My bank balance is Zero as of today. Can anyone help me ?
Our Experts

Sucheta Dalal Trustee - Moneylife Foundation

Abhay Datar Abhay Datar is a consumer activist. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of Mumbai Grahak Panchayat (MGP) in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related with mobile banking frauds and mediclaim. He was a Member of the Managing Committee of MGP till March 2021.

Suresh Prabhu Mr Prabhu retired as Senior Vice President from HDFC Bank

R Bhuvaneswari After serving Bank of Baroda for almost 40 years, Ms Bhuvaneshwari retired as Chief Manager in 2013.

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on finance, credit related issues

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