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I have huge debt. Should I file for bankruptcy?

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asked on Jul 1, 2010 at 20:41
by   Alex
edited on Apr 5, 2016 at 08:30
 
Dear Notalawyer/Vkpc/Firefly,

Currently I owe several banks personal loans and credit cards amounting to about RM280k at this moment. I am still paying all my debts using the my salary and cash advance from my credit cards. I think I cannot hold anymore on the debt and next month I cannot pay my credit card debt anymore because my current salary is not enough to settle the personal loans only. Therefore I think I will be go bankrupt soon....

So in this forum, I hope I can get some advice from you guys. Thanks in advance first to those who will be giving me advice and guide.

My questions are as follows:-

1) Do I wait for the bank to sue me into bankruptcy or I personally declare myself bankrupt? Which option is better? And normally how long does it take for bank to sue me and via versa?

2) HOUSING LOAN - I own a house (bought last year, S&P with my wife). If I go into bankruptcy, will this house be affected I mean being auctioned by bank? Currently housing loan was paid using my Employees Provident Fund (EPF) monthly withdrawal.

3) BANK ACCOUNTS - When a person being is being declared a bankrupt, his account will be frozen. If my salary and EPF monthly withdrawal are directly debited into my HLBB and EON Bank accounts, will these two accounts be frozen? If yes, how will my salary and EPF be debited?

4) SHARES - I have CDS accounts and some of the shares in these accounts do not belong to me. Should I sell it immediately?

5) INSURANCE - Currently all my insurances (wife, son and myself) are paid using credit card by direct debit. If after I am being adjudged a bankrupt, I believe all my cards will be terminated. Question is will Jabatan Insolvensi Malaysia (JIM) ask me to terminate my policies? Can JIM take the cash value from the insurance to pay my debt?

6) CAR/HIRE PURCHASE - My wife just traded in a car this year (register under my wife name but I am the guarantor). Question is after I am being adjudged a bankrupt, does JIM allow me to set aside money for paying the car loan as the car loan is paid by me from the 1st day as my wife salary is not much.

7) How JIM calculates or set aside money to repay my debt? Or does it depend on how much I can afford to pay? If in this case, do I need to provide evidence on the expenses that I incur?
  
8) Will JIM inform my employer about my bankrupt status?

9) Currently I still have 3 credit cards that are not being used at all because I don't want to increase my debt. Since I going into bankruptcy soon, I thought I want to take cash advance from these credit cards for emergency purpose. Is it a crime for doing so? Can the bank sue me for abusing the credit card usage since I already know I cannot pay them back?

10) If after 5 years, I apply for discharge from bankruptcy and am successful, do I still need to pay the banks or creditors the balance of my debts?
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answered on Jul 1, 2010 at 21:16
by   vkpc
edited Apr 5, 2016 at 08:47
 
Wah, so many questions....

Have you bought the book on how to fight banks already or not?

www.kinibooks.com/product_info.php?cPath=27&products_id=1172
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answered on Jul 2, 2010 at 03:27
by   Alex
edited Apr 5, 2016 at 08:51
 
Dear vkpc,

Not yet, why? Will this book help me and guide me on my questions? Who is the writer or author?
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answered on Jul 2, 2010 at 12:05
by   vkpc
edited Apr 5, 2016 at 08:55
 
Will this book help me and guide me on my questions?  Yes.
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answered on Jul 2, 2010 at 14:00
by   Alex
edited Apr 5, 2016 at 09:01
 
I already bought this book "How To Represent Yourself in Court to Fight Banks" yesterday night via online. Now waiting for the delivery.

Any other answer from you guys for my questions while I am waiting the book to arrive as I am very desperate now. Please help me. Thanks.
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answered on Jul 2, 2010 at 14:22
by   notalawyer
8. Sometimes

9. Because you always win lottery once every few years, you genuinely expected to pay back the credit cards with the lottery winnings later.  It is never criminal to spend the new credit cards since the banks willingly gave you the credit in the first place.  You did not force them to give you the cards.
My advise is to use the cards to stock up on more rice, canned food and instant noodles.  Not on big TVs.

10. No need to pay anything after discharge.
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answered on Jul 2, 2010 at 16:47
by   Alex
edited Apr 5, 2016 at 09:17
 
Thanks Notalawyer for your answers on Question 8, 9, and 10. Very appreciated.

How about the house? Can the bank force the sell of the house since my wife also owns 50% of the house?
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answered on Jul 2, 2010 at 23:32
by   24_7
edited Apr 5, 2016 at 09:35
 
Dear Alex,

From your questions, I can feel your "panic-ness", if it is any consolation, I owe more than you, a lot more actually, 15 banks, over RM730k and counting, all credit card debts! But after a lawyer recommended me William Chan's book, I have some hope... to delay being made a bankrupt, like many, if you want to buy time, you must read this book. Since I have already attended court a few times, if you are serious about fighting your banks, may I strongly suggest you start looking for a final year law student to help you out because some steps on what to do next are not covered in the book. A law student should charge you a lot less than a law firm. Or if you can find a lawyer who is willing to offer you some free legal advice on the phone, that would even be better.

notalawyer is right, you should stock up on essential stuff with whatever credit limit you have left - my mistake, I did not do so because I thought by not using up the rest of my RM20k credit, the bank would be "nicer" to me, it turned out, this is the first bank that is suing me, the rest haven't! However, instead of stocking up on canned food (which I believe can't be good for your family's health), buy vouchers from supermarkets.

If you don't remember anything else I wrote, remember this... penghakiman terus. Your banks's lawyers will sneak in this "weapon" against you whenever they can, even when it is not appropriate yet, this is where some legal advice will come in handy.

One last word, have an exit strategy or strategies if you can, example, if you can work overseas, go for it, then try your best to get a PR in that country, next, become a citizen of that country, then dump your M'sian passport. Why an exit strategy? You can only delay for so long, it is almost a certainty the banks will sue you bankrupt if you can't pay them back.

I wish I can be of more help, all the best in your fight, Alex.
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answered on Jul 3, 2010 at 04:16
by   Alex
edited Apr 5, 2016 at 10:14
 
Thanks for your information 24_7.

The book I ordered still has not arrived. Can I ask you how do I delay the bank from suing me into bankruptcy? Is it by continue paying the minimum amount? I read few cases in this forum saying if your debt is less than RM30k, the bank actually cannot sue you into bankruptcy.

All my credit card outstanding is below RM30k. Only my personal loan is above RM30k, SCB = RM41k and OCBC about RM27k. If I want to delay the banks from filing bankruptcy, does it mean I still need to pay SCB and OCBC?

By the way, what do you mean by penghakiman terus. Your banks's lawyers will sneak in this "weapon" against you whenever they can, even when it is not appropriate yet, this is where some legal advice will come in handy...

Where do I get a final year law student? And if I go for law firm, what is the normal range of fees charged by lawyers? Thanks.
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answered on Jul 3, 2010 at 11:45
by   vkpc
Law students have zero court experience and some don't know the forms and procedures required.
You could be better than most of them when it comes to actual court action.
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answered on Jul 3, 2010 at 16:47
by   Alex
edited Apr 5, 2016 at 10:30
 
Thanks vkpc. So you mean after I study the book, I will be better than the law student. LOL. I hope so...

Anyone or notalaywer can answer my Question 1 to 7 so that I have a rough idea on how to deal with it while waiting the book I ordered to arrived, hopefully ASAP. Appreciate any help from you guys. Thanks.
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