To sum up, I'm a person with disabilities (PwD) dependent on freelance income, and all loans and cards I had were pre-approved based on my creditworthiness. I maintained 100% on-time repayments for 5+ years, but I crossed my ability to keep up a few years back when health episodes flared up, causing disruptions. I responsibly sought EMI pause and restructuring, but it was denied with threats of collection and legal action, forcing me into a debt spiral, and my ability to earn progressively declined. A couple of months ago, I was forced to default due to genuine inability. My perfect 100% on-time repayment history and 750-850 credit score was ruined forever, now 90+ DPD across several loans and CCs. I am getting legal notices left and right, as well as aggressive collections (non-compliant with RBI). I have been refused forbearance + settlement options. Some credit cards are open to settlement, but no forebearance or discounted settlement. So, effectively, just asking to preclose with 3 EMI payments of the total amount of interest + principal, or foreclose the full amount, without compromise.
My question is, has anyone here gone through arbitration or litigation, what to expect, and how long does it last, if I don't object to their genuine claims? I'm concerned about whether I'll survive the arbitration and litigation process due to my health and disabilities, as I am at high risk of a heart attack and stroke. Court hearings could be a traumatic experience. I have already told them I have no family, or any attachable salary, assets, or estate. They are still aggressively threatening legal action, and I have already received several legal notices. An arbitration process has even been initiated, but I asked it to be postponed as I need legal representation to participate due to my disabilities. Having an idea of what to expect in the weeks and months ahead would be helpful. Info available online is all generic, no one is actually talking about their personal arbitration or litigation experience for unsecured loans and cc.
Note, no individual liability over four lakhs, and that's just the highest, such as maxed out cc with interest, penalties, and dues added as overlimit. I made partial payments for loans and CCs after being forced to default (due to genuine inability), but that made no impact, and I got NPA marked everywhere. In hindsight, I should have just used the partial payments on health stuff.
My question is, has anyone here gone through arbitration or litigation, what to expect, and how long does it last, if I don't object to their genuine claims? I'm concerned about whether I'll survive the arbitration and litigation process due to my health and disabilities, as I am at high risk of a heart attack and stroke. Court hearings could be a traumatic experience. I have already told them I have no family, or any attachable salary, assets, or estate. They are still aggressively threatening legal action, and I have already received several legal notices. An arbitration process has even been initiated, but I asked it to be postponed as I need legal representation to participate due to my disabilities. Having an idea of what to expect in the weeks and months ahead would be helpful. Info available online is all generic, no one is actually talking about their personal arbitration or litigation experience for unsecured loans and cc.
Note, no individual liability over four lakhs, and that's just the highest, such as maxed out cc with interest, penalties, and dues added as overlimit. I made partial payments for loans and CCs after being forced to default (due to genuine inability), but that made no impact, and I got NPA marked everywhere. In hindsight, I should have just used the partial payments on health stuff.
