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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 27, 2018 at 15:25
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edited Nov 23, 2018 at 01:05
 
The minimum threshold amount for bankruptcy is RM50K for Malaysia, what is the minimum amount for in Singapore?

SGD15K, and my debt level with some Singapore banks are higher than SGD15k.

How long have you been staying in Singapore? Do you own a house in Malaysia?

I stayed in Singapore for more than 10 years. But last month I moved to Johor Bahru (JB) to protect the Singapore house owner from debt collectors. I think I am still considered a Singapore Resident as I have been working in Singapore for more than 10 years, I am a Singapore PR, although just shifted to JB now.

I have not informed any banks about my new JB address. Should I update the Malaysia banks with my new JB address? The Malaysia banks know my hometown address and old Singapore address.

Never own any house or car in Malaysia. What I worried is HL will go to my hometown address for Writ of Seizure and Sales (WSS).  Should I go HL to change all address to another Singapore address?
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answered on Oct 27, 2018 at 21:50
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Technically you can prevent Malaysian bankruptcy if you are domiciled (staying ) in Singapore and do not own a house in Malaysia.
Of course the bank may still try to make you a bankrupt, but if you self represent and fight intelligently, you can use this hole to prevent Malaysian bankruptcy.
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answered on Oct 27, 2018 at 23:01
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edited Nov 23, 2018 at 01:06
 
Have you been using MACS to travel between Johor Bahru (JB) and Singapore?
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answered on Oct 27, 2018 at 23:38
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edited Nov 23, 2018 at 01:08
 
As you know, with my limited funds now,  I can only pay either Singapore or Malaysia banks each month, not both.

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.

Based on the situation, strategically.. better you focus payment to Singapore banks.

And prepare yourself for the legal battle for the Malaysia side.
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answered on Oct 28, 2018 at 00:16
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edited Nov 23, 2018 at 01:46
 
Have you been using MACS to travel between Johor Bahru (JB) and Singapore?

MACS is mainly for foreigner or Singapore Citizen. Malaysia Passport Holders who are Singapore PR are not required to use MACS. We use Malaysia passport for daily travelling between Johor Bahru and Singapore.

Based on the situation, strategically.. better you focus payment to Singapore banks. And prepare yourself for the legal battle for the Malaysia side.
I need brothers and sisters here assistance on this legal battle. My Bahasa Melayu is not up to standard, I can't even speak Malay. Not sure if the court accepts English documents? Can we speak English in the courts?

Technically you can prevent Malaysian bankruptcy if you are domiciled (staying ) in Singapore and do not own a house in Malaysia.
That means technically, a Singapore Resident who owe more than RM50K to Malaysia banks cannot be sued bankrupt by Malaysia courts? But HL bank can use my hometown (Malaysian IC) address as an excuse to say I am Malaysian Resident?
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answered on Oct 28, 2018 at 01:02
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edited Nov 23, 2018 at 01:17
 
Notes:

Obstacle 1
debt level with some Singapore banks are higher than SGD15k. 
"some banks"

Obstacle 2
We use Malaysia passport for daily travelling between Johor Bahru and Singapore.
"Domicile issue"

Obstacle 3
moved to Johor Bahru (JB) to protect the Singapore house owner from debt collectors
"Next cause of action, DC wait outside your working place"

Solution :-  Follow @kiki suggestions above. Settle debts with Singapore Banks.

Quotes
The Singapore government wants to ensure that you are a law-abiding resident and that you will not become a burden on Singapore if you are granted a PR status. They want you to be an asset to the country.
(Owing debts beyond disposable income is a Liability Factor)
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answered on Oct 28, 2018 at 01:20
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edited Nov 23, 2018 at 01:19
 
Owing debts beyond disposable income is a Liability Factor
True. Singapore Government also wants us remain in Singapore to clear the debts. PR status will not be affected by debts level.

"Domicile issue"
This one I really not sure.
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answered on Oct 28, 2018 at 02:06
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edited Nov 23, 2018 at 01:20
 
Singapore Government also wants us remain in Singapore to clear the debts.
Malaysia Government will also want you to remain in Malaysia to clear your debts here by the non-renewal of your Malaysia Passport. Why pay Singapore Banks and not Malaysia Banks?
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answered on Oct 28, 2018 at 08:48
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edited Nov 23, 2018 at 01:26
 
I need brothers and sisters here assistance on this legal battle.
Avengers Malaysia is always around to help.

My Bahasa Melayu is not up to standard, I can't even speak Malay. Not sure if the court accepts English documents?
Some documents must be in Malay but no problem as you just follow the standard forms.
Argumentative documents can be in English.

Can we speak English in the courts?
Can. In fact most lawyers speak English in Court.

That means technically, a Singapore Resident who owe more than RM50K to Malaysian banks cannot be made a bankrupt by Malaysian Courts?
Technically correct if you fight based on Domicile Issue. If you don't fight, you will become a bankrupt.

But HL bank can use my hometown (Malaysian IC) address as an excuse to say I am Malaysian Resident?
When you fight, you can say that you are staying in Singapore and show your PR document.
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answered on Oct 28, 2018 at 12:00
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edited Nov 23, 2018 at 01:29
 
When you fight, you can say that you are staying in Singapore and show your PR document.
They will need a valid Singapore Home Address? I don't think can use the the old Singapore address that I previously stayed? I do have a new Singapore mailing address, but that is a mailbox only, not staying there.

Malaysia Government will also want you to remain in Malaysia to clear your debts here by the non-renewal of your Malaysia Passport. Why pay Singapore Banks and not Malaysia Banks?
Passport expiry is end of 2020, probably can be renewed in the end of 2019, hope I have not become bankrupt by that time.

In the mean time, do I go the HL branch to change the Loan Account address to an Singapore address? I guess they will be reluctant to change it to a foreign address. Currently, the Loan Account residential contact is my hometown address.

At this stage, should I negotiate with HL Bank when their credit department call me? Coming mid November 2018, the 2 months miss payment will become 3 months. I assume in mid November, they will recall the loan account and send another "Notice of Demand" full settlement of loan?
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