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Personal Loan and Credit Cards are Overdue, Legal Action started

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asked on Oct 26, 2018 at 14:10
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edited on Nov 22, 2018 at 23:41
 
Due to my current financial troubles, I am unable to pay my personal loan installments. 

HL Bank sent me a lawyer demand letter, saying I have to settle the two months overdue installments within one week, or my loan account will be cancelled, full payment will be needed. The law firm letter was dated end of September 2018, so I manage to pay one month in early October and thus avoided loan account cancellation.

Now the month end approaching, and it is two months overdue again. Received SMS asking me to pay, so far I never answer their calls. I will not able to pay this time and should I call HL Bank to negotiate? I don't think they will entertain me right? 

What is my strategy now to delay loan accounts cancellation or further legal action?

Maybank Credit Cards also two months overdue, but so far Maybank has not started any legal action yet. But early November 20018 will become 3 months overdue, I also afraid Maybank will cancel my credit cards and demand full payments. Funds are limited, but cannot cover all. Should I do partial payment to HL or Maybank first?

My Profile: Singapore PR working in SG. I used Malaysia NRIC hometown address to apply for both credit facilities. But I do not stay in my hometown. The lawyer demand letter was sent by POS Laju to my hometown address but nobody at home, so my mum went to post office to collect the letter.
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answered on Oct 26, 2018 at 14:30
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edited Nov 22, 2018 at 23:41
 
What is my strategy now to delay loan accounts cancellation or further legal action? 
1.  Pay all overdues.
2.  Seek AKPK advice. You can use your income status from Singapore.
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answered on Oct 26, 2018 at 14:53
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edited Nov 22, 2018 at 23:46
 
If I have the money, sure can pay all overdue, but now that my overdue amount is so huge and with limited funds... option 1 is really out.
 
Do you think AKPK will entertain me if Singapore side also likely going for bankruptcy within next few months?
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answered on Oct 26, 2018 at 15:01
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edited Nov 22, 2018 at 23:48
 
Singapore side also likely going for bankruptcy within next few months.
You will be having immigration issues should either side take legal action till bankruptcy level.

Go hide inside Thailand while you still have funds.
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answered on Oct 26, 2018 at 15:37
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edited Nov 22, 2018 at 23:49
 
What are "immigration issues"? I do not any funds to hide in Thailand too. So can only continue to work in Singapore.
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answered on Oct 26, 2018 at 18:53
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What is my strategy now to delay loan accounts cancellation or further legal action? 

What is the depth of your debts..
How much do you owe the banks?
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answered on Oct 26, 2018 at 19:00
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The worst thing you can do now is to pay the banks everything you have only to delay bankruptcy by a few months.
If bankruptcy is inevitable, you need to conserve all your cash to survive the hard times.
Don't underestimate how hard bankruptcy can be on you and your family.
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answered on Oct 26, 2018 at 21:32
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edited Nov 22, 2018 at 23:52
 
What is the depth of your debts.. How much do you owe the banks?

HL total debt around RM90K, it would be my largest creditor.
Maybank credit card total debt around RM25k.
Other 3 banks credit card debts each RM10k or less.

HL seems quite eager to pursue legal action? Not sure if I am considered Malaysian resident since I do not work in Malaysia?
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answered on Oct 26, 2018 at 21:37
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edited Nov 23, 2018 at 00:06
 
The worst thing you can do now is to pay the banks everything you have only to delay bankruptcy by a few months.

Because there will be at least 2 months bonus before Chinese New Year, around early February 2019. If can drag until then, maybe situation will improve abit.

As you know, with my limited funds now,  I can only pay either Singapore or Malaysia banks each month, not both.

If I pay Singapore banks, that means I'll be ignoring debts with Malaysia banks. By doing so, bankruptcy proceeding by Singapore banks could be delayed until after bonus. I can still use this bonus to pay Malaysia banks, bills etc. I am less familiar with Malaysia banks operation, not sure how to delay their legal action.

If pay HL or Maybank, then Singapore banks will not be paid and they are fast to send legal letter. Bankruptcy proceeding by Singapore banks seems much faster then Malaysia. When the Singapore bank freezes my account, my bonus is likely to be gone too.

Very difficult choice.
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answered on Oct 26, 2018 at 22:43
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edited Nov 23, 2018 at 00:58
 
If pay HL or Maybank, then Singapore banks will not be paid and they are fast to send legal letter. Bankruptcy proceeding by Singapore banks seems much faster then Malaysia. When the Singapore bank freezes my account,

The minimum threshold amount for bankruptcy is RM50K for Malaysia, what is the minimum amount for in Singapore?
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answered on Oct 27, 2018 at 00:42
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How long have you been staying in Singapore?

Do you own a house in Malaysia?
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