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Creditor Petition

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asked on May 26, 2015 at 19:46
by   sdw2010
Dear Lawyerment,

Good day. To cut short. way back to 2012, i failed my business, owing 2 major banks the commercial loan totalling RM450K, plus 3 more banks on personal loan and cards for about RM80K. After much negotiation, to no avail. Something that i realised it's part of the life that i need to give up and let go, rather than keep struggling myself in the dark !

I have relinquished my 1/2 share on our joint-name house, paid the bank, then refinanced it to other bank to safeguard our home, now it is under my wife sole name (I suppose my 1/2 share obligation is given out, later OA will not come after my house); Transferred my car ownership as well to wife 6 months ago. Now i have totally no more personal asset in hand. Having a stable job. Boss know my situation and promised if later i'm adjudged a bankrupt, i still can work with him, in view of my top performance.

Now the first bank's legal action has already reached CP stage, which i just received by hand; High Court Hearing date 23rd June. Another bank litigation is until Judgement Debtors Summons. Now i would like to ask,

1) Any way i can prolong the legal suits case ?
2) Can i file an Affidavit to transfer the file to PJ Court which is nearer to my work place ?
3) My house should be safeguarded ? As the redemption which to settle my portion already paid to that bank prior to their legal suit began, and the bank has discharged the house, then only my wife refinanced it with another bank, under her sole name now. Will later OA comes after my house ? I guess will not right ? just need to assure this ? as that is our only shelter for my family with 2 kids.
4) Any other things that i have overlooked which i can prepare before the "Judgement Day" ?

Thanks very much for taking your time to read my message. Im now very calm over this situation, when things are beyond your control and cant be changed, the only way is you face it and accept it (after learning from reading William Chan's book).
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answered on May 26, 2015 at 20:13
by   virnicia
Did you receive Notis Kebangkrapan before Creditor's Petition?

Where did you buy William Chan's book?
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answered on May 26, 2015 at 20:36
by   jeff005
Dear SDW2010

Personal Opinions

1) Any way i can prolong the legal suits case ?
My point of view is unlikely. However they are others who have done it before and may share it out later here.

2) Can i file an Affidavit to transfer the file to PJ Court which is nearer to my work place ?
For debts lawsuits, very unlikely unless your application is based on very strong grounds.

3) My house should be safeguarded ? As the redemption..
Not likely to have much trouble unless the bank CSI is very efficient plus under pressure to perform. It is not a transfer and the new owner did it legally and now "co-ownership" with a bank. Btw, when was it? exceeded 2 years period?
Sell the car if it is "on transfer" mode before court case (personal opinion).

4) Any other things that i have overlooked which i can prepare before the "Judgement Day" ?
Just prepare your children and wife mentally on the challenges ahead. Life as a bankrupt is not a bed of roses neither is it a hell-hole. It is not the major banks that would give you "mental haressments" but the other smaller banks. So if there is no choice, be bankrupted asap(based on your age), report in to JIM asap and start the 5 years case management immediately. There could be a second chance to rebuilt your life/career in 6-7 years time.

The major issue is how you are going to file SOA(Statement of Affairs) at JIM, by making sure it is properly filed, declare all Creditors and make sure all attend the 1st Creditors Meeting at JIM and you would be covered. Btw, what type of business failure? If it is on trading of goods and you have a lot of "bad debts", I can write more. Even on building contracts (supply of building materials).

pls answer "virnicia" asap..
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answered on May 26, 2015 at 20:37
by   sdw2010
CP will be the final stage before Court grants you the Bankruptcy status  !

I got the William Chan book from MPH.

Rgds.
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answered on May 26, 2015 at 20:40
by   virnicia
Did you receive Notis Kebangkrapan before Creditor's Petition?

William Chan's book has some examples on how prolong the lawsuits.
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answered on May 26, 2015 at 21:02
by   jeff005
CP will be the final stage before Court grants you the Bankruptcy status !

Personal interpretation on company laws.

1/ Soleproprietorship
2/ Partnership
3/ Sdn Bhd.

Bankruptcy is based on INDIVIDUAL. Does not affect any ongoing business. CP will have to served on the business entity first(for secured loans). If the business cannot pay, close the business entity first then try to recover from the soleproprietor, filing bankruptcy as a last resort. When the business entity is partner or partners or as well as sdn bhd, the procedure for "Bankruptcy proceedings" is much more complicated and must follow proper legal procedures. What I have read and understand, most LOW_yers have done "short-cut" and this is what we can "fight" to delay the court proceedings(If the need to).

Hope someone can expand on my personal opinions. TQ..
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answered on May 26, 2015 at 21:47
by   sdw2010
Thanks Jeff for your valuable reply and feedback.

Mine is Partnership business, of course when the loan is default, bank will go after the individual partners. when i negotiated with the bank, they advised me to refinance my house, so we proceeded using my wife name, so the whole OMV of the house proceeds was paid to the bank. Then the property is discharged, now under another new bank, loan under my wife sole name, that was last year March. (we gotta re start paying the house after so many years.

Due to larger amount, after settlement from the house proceeds, i still owed the bank RM250K outstanding, they dont allow me to stretch the tenure of repayment after much discussion (as one of the loans with O/S RM160K belongs to a CGC Loan), i was stucked there !! where can i gather such RM160K in such a short period of time to fully pay off them ?!? so, they proceeded with litigation further after 6 months later after the property was discharged from them.

When i was in bad times, i sold my car and bought a 2nd-hand Waja for my transport, year 2001 car. 6 months ago, i just trf to my wife name (treat like selling it to her). Guess the car market value is now RM10K only (i know....a bankrupt can only keep a car worth RN5K). i would see how....may be can appeal to JIM, it is an old car..not much value. and i need it for my daily commuting ! possible ?
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answered on May 26, 2015 at 21:54
by   jeff005
It is not your car.. what can JIM do? Small matter..
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answered on May 26, 2015 at 22:17
by   sdw2010
Thks Jeff and Vernicia.

Jeff...mind i ask are you also one of us ? i was trading in goods, but my debtors are all banks.

i have fully prepared my mental well towards this hardship, so do my wife. Now, may be i need go extend my passport first. i know that the most inconvenience is you cant travel overseas as freedom as you want after being adjudged bankrupt. Any other major limitation ? well...i myself did pay a visit to JIM Office before this, tryna get some info as much as i could....
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answered on May 26, 2015 at 23:08
by   jeff005
are you also one of us
??? does not compute. Am male aged 60. same specie but diff circumstances. My life history is all over the forum.

trading in goods, but my debtors are all banks
How to fail in the business? Got bad debts? EPL betting kaki?

you cant travel overseas as freedom
Once a person ia adjudged a bankrupt, the current passport will be surrendered to JIM
If you are reporting in to JIM, and maybe paying something, you can get permission to travel overseas for work by the giving a guarantor and deposit. If your children wishes to bring for a holiday, oso CAN. Have to apply only.

i myself did pay a visit to JIM Office before this, tryna get some info as much as i could....
If you meet a half past six counter info clerk there.. habis.. most probably half past six info..

You can continue to drive and work as usual, apply for a bank account to bank in wages. Some deductions will be made direct debit to JIM. The amount depends on your income and the ability to meet family expenses. So the filing of a bankrupt on the I&E(Income & Expenditure) declaration is very important.
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answered on May 27, 2015 at 02:43
by   Gladt
Hi,
From all the above post, it seems to me that
you are treating the receipt of CP as the
end of the road, it is just a matter of time
that you would be a bankrupt.

i did receive my CP, and the hearing of the CP
was during last Chinese New Year. Not only
i managed to set aside the CP, I was also
awarded cost.

Post your CP here, let us see whether there is
any loopholes.
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