Loading
Advertisement

Bankruptcy or AKPK
1909 Views  ⚫  Asked 7 Years Ago
asked on Apr 3, 2009 at 15:07
by   almostdie
edited on Jun 26, 2016 at 23:32
 
My total debt to few banks is around RM230,000 (credit cards and personal loans). Ever since early last year, I started to have difficulties to pay the minimum amount on time. However I still made some payments on and off. My net income is RM8,000 and after minus my expenses I have about RM4,000 to pay back my debts. However, this is still insufficient to pay the minimum amount to every bank.

Basically I do not have any tangible asset, I have one house (market value about RM100,000) which I remortgage early this year and I have one 7 years old Wira (market value around RM10,000).

I don't have any savings and every month I am left with few hundreds for my own expenses. So virtually I am already a bankruptcy.

So, like the others, I have been receiving numerous calls from bank, collection agency, lawyer chasing for payment. Most of them are not polite and threaten me with all kinds of tricks... summons, bankruptcy and so on.

I think I will go crazy and psycho if they continue to harass me.

I have approach Agensi Kaunseling & Pengurusan Kredit (AKPK) early last month and  made my first payment, the monthly repayment they proposed is RM2,700.

Since AKPK process will take about 2-3 months to approve, the banks and collection agency still keep calling me and threaten me everyday even though I told them I have applied to AKPK and waiting for approval.

So my questions are:

1) Can I stop making payment to banks while waiting for AKPK approval? Actually I have stop making payment to few banks this month since I am already broke.

2) Should I wait for the banks to sue me bankruptcy since I don have any assets except an old car?

3) What would happened if the banks sue me bankruptcy and how much should I pay? Can I just pay some minimum amount and wait for 5 years and appeal for 'pelepasan'?

4) Would the banks still charge interest after I am declared a bankrupt?

5) Should I wait for bankruptcy or wait for AKPK's approval since under the Debt Management Programme (DMP), the repayment will also include some interest to the bank?

Any advise is very much appreciated.
0 had this question
Me Too
0 favorites
Favorite
31 Answers
Advertisement

 1   2   3   4   Next »
answered on Apr 4, 2009 at 18:59
by   jeffer2881
edited Jun 27, 2016 at 00:53
 
With your current status the better way is to declare yourself a bankrupt, so those interest will be stop at that moment. What you lose is a car and a house for debt repayment, but allow you more time to arrange your debt repayment without interest adding up.

With your income, you should be discharged from bankruptcy easily.

There is NO such thing as auto discharge after 5 years.
0 found this helpful
Helpful

answered on Apr 17, 2009 at 15:57
by   AKPK DMP Club Member
edited Jun 27, 2016 at 01:09
 
Has your AKPK application been approved? I understand your desperation as I have been like you. I am in AKPK's Debt Management Programme (DMP) now.

Hope you don't mind my answers to some of your questions.

1) Can I stop making payment to banks while waiting for AKPK approval? Actually I have stop making payment to few banks this month since I am already broke.

I stopped making payments to some banks too because I was really broke at that time... In my experience, once you were given a chance to submit the DMP form, the chance of getting the application approved was quite high.

My credit counselor had told me that one reason why some applications were rejected - The applicants didn't answer phone calls when the credit counselors needed more info or documents from them.

2) Should I wait for the banks to sue me bankruptcy since I don have any assets except an old car?

According to my credit counselor, once you have submitted your application, banks can not initiate any legal actions.

You may get calls from banks telling you that they are going to sue you or your accounts are at legal stage, well, they try to frighten you. Play along with them - sound scared when talking with them, but forget about it once you hang up the calls.

3) What would happened if the banks sue me bankruptcy and how much should I pay? Can I just pay some minimum amount and wait for 5 years and appeal for 'pelepasan'?

Look at answer for Question 2.

4) Would the banks still charge interest after I am declared a bankrupt?

It's too early to worry about this when your AKPK application may be approved.

5) Should I wait for bankruptcy or wait for AKPK's approval since under the Debt Management Programme (DMP), the repayment will also include some interest to the bank?

Of course, wait for AKPK's approval. You don't need to file for bankruptcy if you are in the DMP. Your credit counselor will let you know the interest rates, but one thing for sure, the interest rates are much lower than your credit card interest rates. Mine is 6% and 7%.

Answers from a credit card debt woman who is now under AKPK's debt management program.

Any advise is very much appreciated.
0 found this helpful
Helpful

answered on Apr 18, 2009 at 10:47
by   Jason
edited Jun 27, 2016 at 01:40
 
I think my message is very important to you.

I do ow bank RM220,000 TO RM230,000 like you and I pay RM2,500 per month with interest rate of 9% per annum.

Just stop paying the bank immediately since your record is not good anymore and I am sure AKPK will approve your application based on your income of RM8,000. Don't worry about bankruptcy since you have enrolled in AKPK.

Just tell your creditors to sue you or **** off and don't feel pressured in answering their calls. They can't sue you if you have enrolled in DMP pending approval. Don't worry!!!

With your income and saving of RM4,000, after minus your AKPK monthly payment you are still financially sound. Trust me live happier!
0 found this helpful
Helpful

answered on Apr 28, 2009 at 16:45
by   Summer Lady
edited Jun 27, 2016 at 01:52
 
Really.. go for AKPK when you still not under Bankruptcy Notice or Creditor Petition..

The later you go, the closer to bankrupt you are..

It is s not that easy as those people had said.. discharged after 5 years.. No such thing as getting auto discharge after 5 years.
0 found this helpful
Helpful

answered on Apr 30, 2009 at 10:28
by   Money Is Debt
edited Jun 27, 2016 at 02:01
 
If I were you, earning RM8,000 per month, I would save those money. Why pay the bank? They don't need your money to survive. They got billions and billions but you DO NEED the money to survive! If your bank account is frozen, put the money in bank account of a person who you trust, like your mum, or keep it in your house vault! The bank does not care if you are homeless, carless, cashless. They don't care anything about your damn problems. Cause all they care is their money.
0 found this helpful
Helpful

answered on May 7, 2009 at 12:09
by   AKPKian
edited Jun 27, 2016 at 02:02
 
I did not make any payment to any bank once I've submitted my application. AKPK will help us to find out from CCRIS on our latest outstanding balance and approach all banks on our behalf to negotiate on the terms.

Just have to be more patient. Even you are under AKPK Debt Management Program. Some banks will not stop going after you for payment. Just insist that you are under AKPK DMP that's it.
0 found this helpful
Helpful

answered on May 10, 2009 at 19:18
by   cardburden
edited Jun 27, 2016 at 02:03
 
I am in the same boat as others. I have enormous debt to be settled and after by many banks. I live with fears and worries.

My banks were calling me almost everyday. I am helpless and I am NOT be able to service my monthly instalments.

Yes, I seek assistance with AKPK and entered DMP. Well, similar situation, the banks harassed without stopping ...

Will like to share my experience with others.
0 found this helpful
Helpful

answered on May 23, 2009 at 23:38
by   Donal Trump
edited Jun 27, 2016 at 02:09
 
Do not worry if one has enrolled in the AKPK's DMP (Debt Management Program). According to regulation, the first 3 months a person is accepted into the DMP, the banks are not allowed to sue its debtors who are accepted by AKPK's DMP. If the banks do so, debtors can file a complaint to Bank Negara Malaysia (BNM) including harassment. Insist on your rights. After all, the AKPK's program is owned and managed by Bank Negara Malaysia who actually regulates the banking industry.

We are human beings with emotions. Banks should not act like monster robots trying to squeeze debtors' neck when they are already under stress and anxiety, let alone sometimes - thinking of suicidal feelings - and in turn leading to insomnia and high blood pressure. We are people created out of love and people needs love and understanding to move on in life. This world is too much centered on money instead of being a miracle to other people's life. Let not money and fear dominate our live. I am not saying money is not necessary. Purpose in life has a much more value than just earning money. We live for a purpose higher than the value of money! Cheers!
1 found this helpful
Helpful

answered on Jun 6, 2009 at 12:50
by   cardburden
edited Jun 27, 2016 at 02:08
 
AKPK will definitely save you .. no problem.

DO not pay the bank a single once you are in DMP. Answer the bank's phone calls, insisting on you are in the DMP program and no money will be paid to the bank. Tell them you are already BROKE.

Your AKPK approved letter will be on the way...
0 found this helpful
Helpful

answered on Aug 25, 2010 at 16:03
by   Leo Future
edited Jun 27, 2016 at 02:12
 
I just received a call from AKPK and they told me by next week they will process and will let me know the amount of the 1st payment. Once I done that, only then they will calculate my salary & start to fix the monthly payment. Since my debts is around RM140,000 (with credit cards, personal loans, house & cars)... how much will the first payment be. Since I'm only earning RM1,800 per month & a single mom of 2 kids.

Furthermore I need to ask, since my house and car are 3 months due this month, must I pay the bank as usual for the house & the car loans (pay 1 month due). Worried they might take back the car. Its the only transport I have to send my 2 kids to school and for my work. Will they send notice for the house as well. What must I say to the banks?

Please give a clear view. I hear from few friends, the AKPK will take away the house and car to settle some of the debt. I'm so worried.
0 found this helpful
Helpful

 1   2   3   4   Next »

Your Answer





By posting your answer, you agree to the privacy policy and terms of service.


Advertisement