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Bankruptcy or AKPK

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asked on Apr 3, 2009 at 20:07
by   almostdie
edited on Jun 27, 2016 at 04:32
 
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.
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answered on Aug 25, 2010 at 21:26
by   vkpc
edited Jun 27, 2016 at 07:13
 
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.
Don't worry and don't listen to your friends.
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answered on Aug 25, 2010 at 21:32
by   Leo Future
edited Jun 27, 2016 at 07:14
 
Thanks a lot 'vkpc'. I was so tense and at least I could breath peacefully. Never been in this situation before. All happen due to wrong investment.
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answered on Aug 27, 2010 at 13:07
by   magg
edited Jun 27, 2016 at 07:20
 
I have almost the same situation here.. owing to bank about RM350,000. Still not seek Agensi Kaunseling & Pengurusan Kredit (AKPK) because heard friend says that they're going to sell your home to repay your debt.

Questions:

1. Does AKPK have any minimum amount to repay to the banker? Currently my net pay is RM5,000.
2. Now I had asked an agent to sell my house but still no buyer, if once I my house is sold (Sales and Purchase Agreement (SPA) with my husband), does AKPK take the whole sum to settle my debt or just take 50% of my share?
3. Can I still go overseas vacation with my husband?

Please 'notalawyer' or anyone help to clear my picture here... many thanks.
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answered on Sep 1, 2010 at 19:44
by   PJKJG
edited Jun 27, 2016 at 07:31
 
@magg

I am another person who have fallen into the spiraling debt accumulation trap. My total debt (credit cards + personal loans) amounts to RM130,000++. And my net pay is only about RM2,900++.

At first I was in a state of denial that I need to go to AKPK, despite my friend's numerous advice. Until, my car got towed away due to non payment for 3 months. That really knocked the senses into my head.

Immediately I took leave from work and went straight to AKPK the following day. Now I'm at the stage where I have went for: (1) Consultation, (2) Paid the 1st payment to AKPK and (3) Submitted my application.

I'm now waiting for the result which, according to AKPK, I can check in 2 weeks time from the date I submitted my application.

I know how you feel. We are all humans. I'll try my best to answer your queries:

Q1. Does AKPK have any minimum amount to repay to the banker? Currently my net pay is RM5,000.
A1. AKPK will negotiate with the banks to reduce the interest charged down to about 7%-9%, and spread it over 10 years (may vary from case to case, but that's the general guideline). As a rough guide, as I was told by AKPK, for a RM10,000 debt, the monthly payment would be around RM120.

Q2. Now I had asked an agent to sell my house but still no buyer, if once I my house is sold (Sales and Purchase Agreement (SPA) with my husband), does AKPK take the whole sum to settle my debt or just take 50% of my share?
A2. For the Debt Management Program(DMP), AKPK only handles Non-Secured loans problems; ie. credit cards, personal loans etc. Not housing loans or car loans, UNLESS the house or the car has been AUCTIONED off and there are STILL outstanding balance. So, for housing or car loans problem, you will have to negotiate directly with the banks. AKPK will however advise and assist you on what you should/can do. If you still decide to sell the house, it is up to you on how you want to use the proceeds to pare down your debts. AKPK can advise, but cannot take your money because you are not a bankrupt.

Q3. Can I still go overseas vacation with my husband?
A3. As long as you are not a bankrupt and pay your taxes, (and has a valid passport) you should have no problem to travel abroad.

My answers above are only based on my own personal knowledge given on honest basis, and should NOT be taken as the absolute correct advise. The correct answer may vary from case to case (we all have different types of financial problems), where only AKPK would be the authority on the subject.

But my best advise is: DON'T WAIT! GO STRAIGHT TO AGENSI KAUNSELING DAN PENGURUSAN KREDIT (AKPK). As one of the earlier forumer said, THE LATER YOU GO TO AKPK, THE CLOSER YOU'LL BE TO BANKRUPTCY. NEVER WAIT ! NEVER DELAY ANOTHER DAY.

Myself, after I went for the first briefing (everybody has to go for the first briefing before you get an appointment with their consultants), I went home feeling much better, can breathe, can sleep, can eat, can smile. Because I know there is a solution to the problem I'm facing.

Remember, AKPK is an agency set up by Bank Negara Malaysia (BNM). They CAN HELP you. But first you have to help yourself and visit AKPK. Don't be shy or embarrassed, you will find out that you are not the only one. And some even have problems bigger than yours. (That's what I found out when I went there).

So, do yourself a favour and don't wait.

Cheers!
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answered on Sep 1, 2010 at 21:56
by   1818
edited Jun 27, 2016 at 07:32
 
For those who are feeling sorry for themselves, take note that AKPK rejected my case on the first meeting itself. I owe so much credit card debts, my minimum monthly repayment would be about RM9,000 (maybe more) a month! How many people can afford to pay AKPK RM9,000 a month?
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answered on Sep 2, 2010 at 03:27
by   magg
edited Jun 27, 2016 at 07:34
 
@PJKJG

Thanks for your advice... will do the necessary arrangement.

@1818

Why AKPK rejected your offer? I thought their guideline says if your debt is below RM2 million, you still can apply for Debt Management Programme (DMP)? Am I right?
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answered on Sep 2, 2010 at 23:39
by   1818
edited Jun 27, 2016 at 07:36
 
@magg

I can't afford the minimum RM9,000 monthly payments.

Why so much, RM9,000 monthly? Because I owe many, may banks LOTS of credit card debts.
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answered on Sep 21, 2010 at 15:17
by   helpless
edited Jun 27, 2016 at 07:41
 
I am also facing the same problem. Owing bank almost RM200,000 for housing loan. Joint name with my ex-husband. The bank was not able to auction the house due to below market value. I called the bank and asked if I can pay 50% and the rest, collect from my ex-husband but the don't want to entertain me. Shall I go to AKPK? Will AKPK accept such case or only for credit card debts? How can I make my ex-husband contributes some payment? We are not in touch and he has remarried.

Appreciate your comments. Thank you.
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answered on Sep 27, 2010 at 15:44
by   charles76
Filing for bankruptcy as early as possible is the best option. It will help you in your debts and give an opportunity to start anew. However, prior to filing for bankruptcy, it is best if you discuss it with a bankruptcy attorney. They sure will help you choose better options and clarify things which are bothering your mind.
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answered on Nov 12, 2010 at 22:32
by   Ms Sim
edited Jun 27, 2016 at 07:44
 
Would like to seek some advice:

My boyfriend owed several credit card debts which amounted about RM30,000. I was told by my friend that in order to apply for the AKPK's Debt Management Program, the applicant is not allowed to have life insurance policy. Is it true? Kindly advise. Thank you.
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