Bankruptcy: Divorce by mutual consent to reduce impact on wife and child?

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asked on Aug 28, 2014 at 05:10
edited on Sep 14, 2017 at 11:30
My wife wants to seek legal aid bureau to divorce me on mutual consent. I am 57 and my wife is 56 (no regular income as clerk). Only 1 daughter still schooling in Form 5.
I am about to be sued bankrupt due to credit cards debts amounting to RM120,000 with 8 banks. I only have 1 flat market value RM150,000 still owe RM60,000. My income below RM3,000. 1 car worth RM2,000.

1. What are the criteria required by legal aid bureau to accept our case?
2. She said legal aid bureau wants to see my latest 3 month salary, EPF, etc.?
3. If engage lawyer cost will be very high?
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7 Answers

answered on Aug 28, 2014 at 14:02
The solution to your financial problems are....

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answered on Aug 28, 2014 at 17:37
edited Sep 14, 2017 at 10:44

1. Why divorce? She your supplementary card holder? Trying to "save" her?

2. What is the highest amount? All also credit cards? Housing Loan?

3. How long you have defaulted payment? Receive any demand letters?

Legal Aid Bureau - there are 3 in Kuala Lumpur.. which one you went. But still same criteria..
1. Bar Council free legal aid
2. Biro Bantuan Guaman (BBG) - Government
3. New one I don't know where.. They advertised on Astro 1 month ago.

Maximum salary with free aid, I remember years ago was below RM2,500. Yes, you have to prove it with documents. They rejected free aid for me because I still have over RM50,000 in my account at the age 56.. but offered subsidised rates.

Yes, you need lawyers to proceed with divorce at High Court. No shortcut. Mutual consent i.e. (Joint Petition) is around RM4-5,000. Get quotations. Don't ask me. I am not a lawyer and I don't advocate divorces. I am a victim of one. I hate divorces whatever reasons.

Your financial woes:-

Read thru the past 2 weeks of all postings in the Bankruptcy and Insolvency Law section. It will give you a good idea of what's next. Your "details" in this posting is too little for digestion.

Your problem is very straight forward. To divorce is not the solution. Unless it is a personal relationship breakdown.
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answered on Sep 16, 2014 at 16:59
edited Sep 14, 2017 at 11:00

Don't understand why continue to stay married?


1. My wife wanted divorce not because of supplementary card (she doesn't have any), she just want to buy another low cost flat which she is now not eligible if she stays married with me. If she gets divorced she can buy one.

2. The highest credit card debt is now RM40,000+, some RM30,000 some RM20,000 the other banks added together now ballooned to RM120,000.  All debts have been defaulted since 2012. Some already received Judgement Summary.
3. I am employed in Kuala Lumpur with a salary of RM2,550 per month. Would that qualify for legal aid?
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answered on Sep 16, 2014 at 20:17
edited Sep 14, 2017 at 11:17

If you don't qualify, your wife apply for free legal aid... but why do it? The divorce process will take months. Is it your idea or your wife? Is there a guaranty that you will be allocated a flat if she is single? And that will she be able to get loans? If pay cash, do they allow it?

I don't know, I do not really advocate divorce, especially at this age group. Do not dwell on a house, rather make a home. A home is that the whole family can live happily together even a rented house.

I understand your reservations. I've thru it before but please don't take this route to divorce for the sake of getting a house. Matrimonial bliss is not just settling issues but the legality of marriage is what some woman is sensitive about.

Shifting and renting a place may be tiring, but at this stage of affairs, we have to accept it. After a while you would get used to it. There is no guarantee that you can be permanently employed at age 57. We are subject to abuses from employers especially if they are aware of your way to bankruptcy. My job scope was changed 4 times in a period of 2.5 years and not paid bonus at all whereas others got 1, 1.5, 2 months. And the joke, I service 12 corporate accounts. KLCC, Midvalley, Ambank and paid RM1,800, work 10 hours a day, 24 hours on call. If company declare I am a non performer, why get the biggest and most corporate account? I take up work as a food street hawker to have a peace of my mind back....

Once upon a time, I think a lot, how to plan for the future despite debts, but alas, the future is not for us to see. Resolve issues one at a time, one day you will be immune to tough issues. There is no guaranty that your daughter will or can take care of you two at old age given the vast age differences if you know what I meant. Most important is to have FAMILY TOGETHER NOW. That is what vpkc is telling us in short format...
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answered on Sep 17, 2014 at 19:44
edited Sep 14, 2017 at 11:19
Hi Jeff,

Thanks for the reply.

It was my wife's idea to divorce so that she can apply for the low cost flat with her EPF money. She can borrow cash from her brothers and sisters to finance the flat. She doesn't want the bankruptcy affect her reputation and my daughter future.

I can't depend on my only daughter to look after us. I need to work till I drop dead in order to survive at this age. I am employed as a sale person with basis plus commission and bonus 1 month at this moment in time.

Just need to discuss further with my wife about the divorce.
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answered on Sep 18, 2014 at 16:09
edited Sep 14, 2017 at 11:24
Hi Steven,

At our age and current situation, why bother with reputation? So long as I don't cheat people, slander or harm people, I believe I would be blessed with a peaceful life next lifetime and food on the table.

I didn't want to default banks, nor try to cheat them. They "gave" me pre-approved cards without me applying for it, and when I couldn't service it prudently, they charged me excessive interests. If they come around and says "Okay, you pay back principal + BLR interest, I would gladly borrow money to settle in instalments.

If your wife wants to change her status just to get a flat, that's her prerogative. It is our fate, karma, etc, to be a couple in this lifetime, for better or for worse!

My personal opinion: Between house or a home.. I choose home!
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answered on Sep 23, 2014 at 03:15
edited Sep 14, 2017 at 11:19
She doesn't want the bankruptcy affect her reputation and my daughter future.
Divorce will affect her reputation more and hurt your daughter's future even more.
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