People who roll money to manage debts- whats your thought process

Debt

Context - my dad has 55L in debt and have been apparently doing rolling for years. We came to know only when he could no longer manage and we got creditors at our door.

He refused to say where the money went and i have tried every way to get it out of him.
To take him out of this mess

1)We told him to forget 30L debt as its on pledged gold (he pledged moms and grandmas gold without them knowing)

2)His brothers agreed to sell a piece of land so that he can pay off private lenders (at 3% per month interest)

Since he was rolling money from relatives and friends he owed a lot of people money (from 500-7500) small ticket no interest loan. His only income is 10K allowance i am giving him (its only for him and i pay mom for household expenses).

Now inorder to help him we had him list out his debts with names and amount (Took 4 hours and 4 people to let this man open up) and the idea was he spill out everything even if its a 500 rupee loan. This happened like 2 weeks ago.

Aa a resolution plan my uncles spoke with 3 of his creditors to hold of interest payment and that they will be paid once property is sold.

My dad was supposed to speak with 3 other creditors and come to an arrangement.

I agreed to take up and pay off 5L of his debts and keep his 10K allowance so that he does not have any monthly payments and can concentrate on selling the property.

As part of this he was supposed to not take up any new loans and not to try anything with the gold loan or pay interests.

\*\*Today i learned\*\*

\*\*1) He did not speak with one creaditor to whom he owes 2L\*\*

\*\*2)There is another creditor to whom he owes 2L and this creditor has some 60K worth of gold with him as gurantee. My dad was supposed to tell this man and sell the gurantee gold and hold off him until property sale. He did not do it.\*\*

\*\*3)My only basis for giving him 5L and another 10K per month was that i did not want him to take money from others until its all sorted. This guy hid a 30K debt to a relative and another 40K debt (he is paying 400 per day) from the list. He was also supposed to pay a 3500 interest on the gold loan from the 10K i am giving him.\*\*

\*\*Its simple math - 400 per day is 12000 and with the interest its 15500 . After this he has personal expenses like fuel for scooter.\*\*

\*\*This guy will have a deficit of may be 7K every month and he will borrow it from others!!!\*\*

\*\*I also know that he took out gold from one finance and pledged in another (according to him to save the gold from auction) this costs money and he would have borrowed again from someone.\*\*

\*\*I gave 5L of my hard earned money so that he can finish of debts and live peacefully. This guy is trying to go back into same debt loop!!\*\*

\*\*I dont know what to do.\*\*

\*\*NB : I am sure i would eventually have to cut him off and i have it in writing that he took 5L from me and 10K a month as maintenance. In the event he files for maintenance in court this will help me.\*\*

\*\*We have also attatched the house we live in (me and my mom invested money in it) against the gold he took from mom - so that he wont sell or pawn it.\*\*

\*\*I have a job and some savings left, i am planning to build a home and move out.\*\*

Posted Sep 28, 2026, 4:38 AM UTC

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