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Receive writ of claim from bank lawyer

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asked on Jan 19, 2017 at 18:21
by   wenger4228
edited on Feb 14, 2017 at 05:53
 
I owe UOB Bank RM17,000 and now they filed a writ of claim against me. I always thought that I would only be charged bankruptcy upon reaching RM30,000. I just want to know whether I want to entertain this writ of claim or not.

What is the consequences of just left it there? Will they get a court order to do something on me or what?

Actually I plan to file a defence on myself as I want to see all the things.

Hope to have good answer from you all.
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answered on Jan 19, 2017 at 18:45
by   Arielle
edited Feb 14, 2017 at 05:55
 
Assuming the debt is within the Limitation Act (6 years) the most they can do for now is to obtain a judgment in default against you if you don't contest the claim. Then they can file bankruptcy against you within 12 years if the amount owed plus interest accrued reaches RM30,000.
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answered on Jan 19, 2017 at 19:39
by   jeff005
edited Feb 14, 2017 at 05:56
 
@ wenger4228

will they get a court order to do something on me or what? 
Once you have been made a Judgement Debtor (JD), the bank is the Judgement Creditor (JC).

The next course of legal actions by the JC are as follows :-

1. WSS Order (Writ of Seizure and Sale)
2. Garnishee Order ( Garnishment of Banking Accounts - any type )
3. Prohibitory Order
4. JDS Order (Judgement Debtor Summons)
5. Bankruptcy Proceedings once the debt is over RM30,000.

actually I plan to file a defence on myself
What is your defence?

as I want to see all the things
There is nothing much to see but plenty to learn.

hope to have good answer from you all
All answers by various forumers are good. The issue is that how good is the condition you are in.

a judgment in default against you if you don't contest the claim
You can attend court proceeding and NOT contest the claim. You would only be made a JD.
If you do not attend Court then a JID will be awarded by the court.
To attend or not to attend depends on individual circumstances and the ability to repay.
Both have its pros and cons
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answered on Jan 20, 2017 at 00:00
by   wenger4228
edited Feb 14, 2017 at 05:59
 
a judgment in default against you if you don't contest the claim 
You can attend court proceeding and NOT contest the claim. You would only be made a JD. If you do not attend Court then a Judgment in Default (JID) will be awarded by the court. To attend or not to attend depends on individual circumstances and the ability to repay. Both have its pros and cons.

The main reasons for me to contest are:

1. Negotiate for better repayment terms.
2. Delay tactics.
3. Don't simply give my money away, fight until they earn it.
4. Experience something that useful in later part of my life.
5. I always believe in myself and it just how I plan my step... make them frustrated and on
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answered on Jan 20, 2017 at 02:49
by   Anonymous
Wow.. wow.. wow..

@Arrielle just been thru it

Perhaps she is kind to share how she overcame the overwhelming odds

When is the hearing date?
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answered on Jan 20, 2017 at 03:01
by   Anonmy
edited Feb 14, 2017 at 06:01
 
Opinions:

1. This is a court. The judgement is either you owe or you don't. The Judge does not want to hear nonsense. Any negotiations is with the bank.
2. The most is 2 hearings if the lawyers do not make procedural mistakes.
3. Well, you have signed the card member application form. They earned it thru loop holes in the legal financial systems. Blame Bank Negara Malaysia (BNM) and Ministry of Finance (MoF) and the lawmakers.
4. You still have other credit card debts?
5. You would end up more frustrated emotionally than the banks. Banks are remote Robots.
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answered on Jan 20, 2017 at 04:00
by   wenger4228
edited Feb 14, 2017 at 06:03
 
@anonmy

1. You suggest that I better straight call bank and ask for the installment better than going thru this?

2. This is what I learn from here, number 1 ask for 3 months to find a lawyer, get a medical certificate (MC) from government hospital to postpone the hearing......this is so call delay tactics

3. This one I cannot do anything.

4. I have other credit card debts, but they are not on this stage yet, some still on negotiation

5. Well, I know I will end up more emotional, but what I can do.
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answered on Jan 20, 2017 at 04:00
by   wenger4228
edited Feb 14, 2017 at 06:03
 
The case management is set at 10 February 2017.
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answered on Jan 20, 2017 at 04:34
by   Anonmy
edited Feb 14, 2017 at 06:05
 
2. This is what I learn from here, number 1 ask for 3 months to find a lawyer, get a medical certificate (MC) from government hospital to postpone the hearing......this is so call delay tactics
You can even ask for 6 months to find a lawyer. There are thousands of lawyers in Malaysia. The most you get is 4 weeks postponement.

Did you know that most medical certificates nowadays have this clause "Not for court purpose" printed? Even before you can hand in your MC you could have been given a Judgment in Default (JID) early early in the morning.

If you intend to attend, prepare your "Notis Kehadiran" and e-file as soon as possible. Things have changed drastically in court procedures since 2012 against debts defaulters.
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answered on Jan 20, 2017 at 14:27
by   Arielle
edited Feb 14, 2017 at 06:08
 
@wenger4228,

In my opinion, you can try all the delay tactics you want, but in the end, you will still end up have to face the fact you owe them a debt. What you need is a solution. You can attend court for your matter and try to delay, but in the meantime, I would suggest you negotiate with the bank.

You can either negotiate for:

a) better repayment terms
b) reduced sum as full and final settlement

Option b is of course preferable, but you must have a fair sum of money set aside to make an offer.

Most creditors will tell you they will not be willing to accept a reduced settlement or if they do, they won't accept anything lower than 70%. But you can go lower than that ... usually 50% or if you have superb negotiate skills, you can even achieve 25% to 30%.

They are usually more willing to negotiate for reduced settlement if the threat of bankruptcy is looming over your head and they're certain you have no other means of paying them.

A creditor will always choose the option that brings in the most amount of money with the least amount of cost and risk. If you negotiate with them early and offer them a fair amount to settle, they save cost on lawyer fees, etc. 

Any negotiation should be done in black and white (writing) and not over the phone.

The main reason why I suggest you to negotiate is because for banks, the interest rate is very high. The longer you wait, the more interest will accumulate and your debt will balloon from RM17,000 to a much bigger amount. 

Another more drastic tactic is to ignore the debt if you can calculate the interest rate and make sure it wouldn't reach RM30,000 by the time the Limitation Act (6 years) can be used to protect you.

More often than not, what the bank obtain will be a mere paper judgment if they have difficulty executing a writ of seizure and sale (e.g. your property cannot be ascertained, encumbered, all the items in the property don't belong to you), difficulty to apply for garnishee proceedings (they don't have your bank details or no bank owe you any money), and as for judgment debtor summons, you can always attend court and show proof you have no financial means.
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answered on Jan 20, 2017 at 16:43
by   Discussor
edited Feb 14, 2017 at 06:14
 
it wouldn't reach RM30,000 by the time the Limitation Act (6 years) can be used to protect you.
For this case it does work. The "tuntutan" here is RM17,000. In just 2 to 4 years, it would exceed RM30,000, not forgetting the costs for this writ which will be more than the court would allow plus other legal next course of action after Judgement Order.

The easiest is garnishment of bank accounts. All banks follow Bank Negara Malaysia (BNM) data extraction system. Bank A will know if Bank B has the same name and IC (K/P) number of the debtor. But they will only know if it is an active or passive account NOT the balances inside it.

For new defaulters, some may still have active hire purchase (HP) and housing loans.

For Judgment Debtor Summons (JDS), if you cannot prove that you have no financial means then the debtor will be in trouble. The lawyer will ask you to produce your EPF statements etc.

Next action (very fast) will be bankruptcy proceedings once over RM30,000.
A debtor has attended court which will require up to date address to be submitted to creditor. No more excuses that "I do not know laws". Any breach, the lawyer will apply for "Committal Order". In this type of situation, a bank can apply for the passport to be held by the Court (if any).

Although JDS is rarely done in Malaysia, it has been carried out before. Refer to "Alex" - 2 years ago by UOB.
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