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

1090 Views  ⚫  Asked 5 Years Ago
asked on May 27, 2014 at 16:13
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.
0 had this question
Me Too
0 favorites
[ share ]
32 Answers
« Previous   1   2   3   4   Next »  Last »

answered on Oct 29, 2014 at 13:51
edited Sep 14, 2017 at 09:34
"A bankrupt's days are comparably similar to a non-bankrupt's days.

You should try it. 30 years after you signed up as a guarantor and just when you have your business and some savings in your bank account, suddenly your bank account is frozen and your car is taken and your house put up for auction and your company which you worked for so hard is forced to close down as you have no money to run it. And they tell you that the borrower has a debt of 10 millions Ringgit which is an amount you could never pay back for 100 years.

Then you tell me if it is similar to non-bankrupt.

I feel so sad that someone replied with such sarcastic comment when people are so depressed and sad. If you are not planning to give any advise, please just skip this topic and go bug other's people post okay?

I am sorry if I sound rude but I was really, really desolate and in despair..
0 found this helpful

answered on Oct 29, 2014 at 13:56
edited Sep 14, 2017 at 09:46
Remember, stress can kill, trigger off illness, so don't be over-stressed by what is happening.. It is not the end of the world, most important is you keep the family together and be happy, I lost 2 "family value life" because of bankruptcy issues..

I am so sorry to hear that. What's your reason for the bankruptcy? Hope you are doing fine now. Thank you for all your advice and it's true. I really couldn't stand the stress. I mean... my mom used to be a tough lady. I have never seen her cried in my life until...
0 found this helpful

answered on Oct 29, 2014 at 14:15
edited Sep 14, 2017 at 09:47
I am working now. I suppose you are a girl. You can call me Jeff. What's yours?
0 found this helpful

answered on Oct 29, 2014 at 15:12
edited Sep 14, 2017 at 09:48

Hey, I thought you are "justice4sale"? I'm Shirley. Thank you.
0 found this helpful

answered on Oct 29, 2014 at 19:00
I'd rather be a rich bankrupt than a poor non-bankrupt.
0 found this helpful

answered on Oct 29, 2014 at 21:27
edited Sep 14, 2017 at 10:02
Hi Shirley,

I am not onto giving you any legal advice. I am sharing with you what I have been through and guide you to get the answers which you are seeking.

After all have been discussed, you will see that there is some light at the end of the tunnel. I view you as a filial daughter, something society is grossly lacking nowadays.

1. Has your father been made a bankrupt? Quick check for his travelling status:

2. Has your father withdraw @50? To understand what is EPF withdrawal:

3. The house your family is living in now, whose name? How many names? Is it still under housing loan? Is the housing loan under one of the banks who is suing your father for bankruptcy?

4. Understand the difference between business/trade creditors and creditors banks. The RM80,000 bank account, is it business, personal, savings? One bank "freeze it" or 3 banks at the same time? The actual term is "Garnish". All 3 banks have served summons to your father? At least one bank has, if not, no garnishment of bank account.

5. I do not want my father to stay bankrupt until the end of his day
He may not remain a bankrupt until the end of his day. I shall explain later. He has to stay healthy now and lively longer to see and play with the children of his filial daughter (Shirley).

6. How did you know that the banks did not try to make the other two guarantors bankrupted. Please do not make assumptions that would make you life more miserable. The Bankruptcy Law is fair to all, don't worry.

7. Divorce to protect the family... Bad chess move. Read:

8. Your mother or even you can start any business of your own now without fear of any problems.

9. If your father has not been made a bankrupt yet, how can JIM (Jabatan Insolvensi) help? Go another 10 times also no answer! Get a BNM CCRIS and a statement from CTOS  for clearer information.

Try to answer as accurately as you can with your father's help. Print all these and show him you are old enough to understand and to share his sorrows and problems.

Note:- All the above is only 50% of all questions. I don't want to "bankrupt" this page!
0 found this helpful

answered on Aug 23, 2017 at 06:40
edited Sep 14, 2017 at 10:07
My husband passed away so sudden and he was not even 40 years old. He didn't have any savings or insurance but only his EPF.

I don't know how to start my life again as money wise I will be broke soon. I am a foreigner married to Malaysian.

My question is regarding the EPF death claim I was reading online that if he didn't put any nominees it will take at least a year to get the full amount plus I have to pay fees to lawyer and such. I have his EPF account online and I have access to his account and upon checking he didn't put any nominees so now I am scared after I go to the EPF office they will ask me for letter of administration to claim. I am thinking if I put my name online under the nominees would that make things complicated? What's my best option for this situation?
0 found this helpful

answered on Aug 23, 2017 at 15:35
edited Sep 14, 2017 at 10:08
I am thinking if I put my name online under the nominees would that make things complicated?
Better not do this as the system will track down it is updated after your has passed away.
0 found this helpful

answered on Aug 23, 2017 at 15:37
edited Sep 14, 2017 at 10:12

I am a foreigner married to Malaysian.
Are you a Filipino?
Are you legally married in your own country or Malaysia?
Registered in both embassies of both country?
Husband 1st marriage? If yes, any children?

I am thinking if I put my name online under the nominees would that make things complicated?
Dead man does not update online. A jail term awaits you for fraud if you do it. The nominee list is signed in the presence of a EPF officer. Just go get the Letter of Administration (LA).
0 found this helpful

answered on Aug 23, 2017 at 20:18
edited Sep 14, 2017 at 10:14
I am thinking if I put my name online under the nominees would that make things complicated?

Nominees can only be viewed online, cannot be added or changed online.
0 found this helpful

« Previous   1   2   3   4   Next »  Last »

You must log in to answer this question.

Not the answer you're looking for? Browse other questions by category or search to find answers.