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Live in a mess with huge debt for being a bank loan guarantor. Is getting out of bankruptcy a possibility?

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asked on May 27, 2014 at 16:13
by   Worried of my dad
edited on Sep 14, 2017 at 09:57
 
I am posting here as I have googled and seek for similar case like mine for a solution.

My sad case, my father is in his early 50 now. He had 1 car, a house and a small business company. Back to his 20s, he was forced to be guarantor of his boss which he didn't even know what he had signed as they was too many document and he signed multiple times of these document.

Now after so many years when he finally had his own business and almost retiring, the bank came and informed that my dad's ex-boss own them total of almost RM 7 million. That is a huge amount of money that we will never be able to settle.

There are 3 guarantors involved.

However, for some reason, total 3 banks did not take action against the other 2 guarantors or the borrowers but approached my father straight away. My father had no choice. He surrendered by shutting down the company and also returning back his car to Toyota and to file bankruptcy. His bank account which contained RM80,000 had also been frozen.

Things are a mess right now.. He refuses to explain to us or seek for any solution. He says there are no any way to escape from this. As there are 3 creditors (bankers).

I was so frustrated and hope to help them out. I saw my mom washing her face with tears every night. It was heart breaking as my father has 4 more years before he retires and this happened. He said long time ago, the boss is like "samseng" that randomly says things like a bullet is cheap, so is a life of a person.

That's why my father had signed all the guarantor documents. From what I heard my father had been assigned to be director of the borrower's private company and so. BUT please take note that we had never taken or received any money or benefits from the borrower. His ex-boss drove a big fancy car and lives in bungalow while we live in very moderate place and drove a local car.

Now, he is still driving his BMW and has a few factories and lives in big house. Bank did not take anything from him while my father lost everything. We guess that's because he is rich, he did something "behind". One of the other guarantor is the borrower's relative and those banks did not took any action against "her" as well. Only my father...

I really need and want to help him but I just started working, have no high income and have not much savings..

Comes to this desperate time, I hope to get advice from forumer or even lawyer here.

Now, I have few questions:

1. How to avoid having his EPF savings taken away by creditors? How to withdraw the EPF savings without being taken away as they are 3 or 4 creditors who want to take everything from my father.

My father's house is still his and no creditor came to take it away. It has been almost 11 months and I ask my dad what is the status now, he just say that we have to wait.

I am not not sure what we are waiting for and why it took so long and no one claims the house. Is it possible for us to keep the house?

From what my dad said, he's waiting for the government to take action and he might need to attend court again.

If the banks come to take my father’s belonging, will they leave anything for him? He is jobless now and need to live. As the bank had frozen his savings account for 11 months. Won't they leave anything for my father?

If my mom is to open a business, will the banker come and look for my mom for the debt? We have even think of divorce to protect the family. It was so heartbreaking. I need to do something.

For this amount, lets say RM 7 million debt, any possibilities for my father to be discharged from bankruptcy in future? Know that the borrower does not plan to pay money back.

I do not want my father to stay bankrupt until the end of his day.

Sorry for the long story. Thanks for your time. Hopefully I will receive some useful suggestion and advise.
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answered on May 27, 2014 at 19:38
by   vkpc
edited Sep 14, 2017 at 08:31
 
You did not mention whether your father is now a bankrupt or not.

If my mom is to open a business, will the banker come and look for my mom for the debt? We have even think of divorce to protect the family. It was so heartbreaking.
Wife is a separate person. Creditors cannot ask anything from wife, kids, cousins or parents.

There is no need to divorce. Feel better now?

Why should your mum cry over money?  It is just printed paper.
Consider if your dad got cancer instead, now that would be something to cry about.
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answered on May 27, 2014 at 19:53
by   vkpc
edited Sep 14, 2017 at 08:32
 
How to withdraw the EPF savings without being taken away as they are 3 or 4 creditors who want to take everything from my father.
EPF is creditor proof by law.  When a person dies, EPF will write cheque directly to beneficiary.

Make sure he has a beneficiary.
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answered on May 28, 2014 at 13:34
by   Worried of my dad
edited Sep 14, 2017 at 08:39
 
I'm not sure.. but maybe the tears from heart-sore. Seeing dad work his whole life from sales man until owning business and by age of 50+, they took everything he has. How will life be after retirement?

He has applied bankruptcy and surrendered the car back to Toyota as well. But it has been 11 months and the house is still there.. no one comes for it.. yet... we hope to keep the house if possible..

Anyway.. thanks for your info and reply...

I see... means that he will NEVER get his EPF? That's really, really bad. How he gonna go through his retirement with kids still young?

We just don't understand that the borrower is still living a luxurious life and the other 2 guarantors are left untouched...

Thanks for your reply...appreciate it.
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answered on May 28, 2014 at 13:58
by   vkpc
edited Sep 14, 2017 at 08:42
 
How will life be after retirement?
Quite fun, can go fishing, motorcycling, vacation etc.

But it has been 11 months and the house is still there.. no one comes for it.. yet... we hope to keep the house if possible..
When Jabatan Insolvensi Malaysia (JIM) sends a letter asking to surrender the house, then it is time to give it up. In the meantime, count the rental you save by having the privilege to stay in the house. Wow!

I see... means that he will NEVER get his EPF? That's really, really bad.
It's very good actually, because EPF pays much higher interest than bank fixed deposits (FD).

We just don't understand that the borrower is still living a luxurious life and the other 2 guarantors are left untouched...
Your dad can also live in luxury in his wife's properties.
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answered on May 29, 2014 at 21:54
by   blueeee
edited Sep 14, 2017 at 08:44
 
Can't believe there's actually people think this is funny and talking sarcastically here... LOL... Just ignore. It's OK.
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answered on May 29, 2014 at 22:41
by   justice4sale
edited Sep 14, 2017 at 08:45
 
Bank did not take anything from him while my father lost everything. We guess that's because he is rich, he did something "behind". One of the other guarantor is the borrower's relative and those banks did not took any action against "her" as well. Only my father...

Yes, here the court (mahkamah) you can buy justice thru some bestow lawyers, then the judges will become very clever quoting laws on your behalf for you to your opponents.
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answered on May 30, 2014 at 20:24
by   Worried of my dad
edited Sep 14, 2017 at 08:48
 
Are there any ways to get out of bankruptcy, since they had freeze his bank accounts and take house and car away? He is jobless now. Any way that I can at least clear his name and let him have normal days back? A bankrupt can't even work for people related to him. He has no income now. So the bank cannot get anything more from him already. Anything I can do?
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answered on May 30, 2014 at 20:56
by   vkpc
A bankrupt's days are comparably similar to a non-bankrupt's days.
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answered on May 30, 2014 at 22:11
by   Jane1963
edited Sep 14, 2017 at 08:52
 
Life is unfair. My hubby is in the same position. Have to carry on with your life. You mentioned account freezed by Jabatan Insolvensi Malaysia (JIM) or the bank that chased after your dad?

About EPF, try opening a saving account with your name (first) & your dad in a foreign bank. Don't worry/embarrassed if the bank reject the application. Keep going to any foreign bank until one that accept your application. You don't have to mentioned that your father is a bankrupt. Act dumb. EPF only need a banking account so they are able to transfer directly into the member account. That's it!!! My hubby is a bankrupt but he is able to get part (1/3) of his EPF. Withdraw it soonest possible when the fund is in.

Such a huge sum... how to get away from bankruptcy (if your father is really a bankrupt). Go to Jabatan Insolvensi Malaysia (JIM) office & pay (I think) RM10 to get the print out to confirm his status. The quickest way some forumer did is go to Immigration website under "semakan status perjalanan".

Check your dad status first ....
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answered on May 30, 2014 at 22:50
by   justice4sale
Life is not unfair, its your responsibility to make it fair. Already this country court system have been tainted by so many case law that have unfair judgment either because the judges were corrupted or there was interference from the executive powers. Then we have coward and kiss add judges that don't help...
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