Owing huge penalty to retail shop developer. What should I do?

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asked on Jun 9, 2017 at 12:43
edited on Jun 12, 2017 at 09:43
In year 2010, I bought a retail shop with 3 years guarantee from developer. After 2 years, the developer stops paying me the rental until now. After the rental agreement with development expired, the developer has been charging me penalty of RM 500 per day for not opening retail shop. For your information, I even gave free rental but nobody wants to rent because the shop is not in good location. I wish to sell below market value also nobody wants to take up. Now I am owing almost RM 90,000 for the huge penalty and the developer is going to sue me for this debts.

I am now having difficulties in paying the bank loan since I've not been receiving any rental payments as well. What should I do now. Can the developer sue me bankrupt for non paying them?
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answered on Jun 9, 2017 at 12:46
Can the developer sue me bankrupt for non paying them ?

Depends on what the agreement you signed says....
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answered on Jun 9, 2017 at 16:27
edited Jun 12, 2017 at 09:51
Thanks vkpc for your prompt reply. For your information, what I signed is the Deed of Mutual Covenant agreement.

I have a small apartment under my name and the house I am staying is inherited from my mother. Can I transfer my apartment and house to my wife or my father-in-law to avoid my house from being taken over should the developer sue me bankrupt? How about my savings, can I transfer it to my wife, in the event I am sued by the developer?
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