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
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 Aug 23, 2017 at 21:32
edited Sep 14, 2017 at 10:22
Thank you so much for info I am desperate looking for answers as I am lost and my in laws like trying to tell me to withdraw the money and pay for their house. So I am thinking what will happen to me if I do that how am I gonna start my life.

We don't have any kids yet been living in Malaysia since 2014 under long term visa. We are married in Malaysia for 2 years plus. What are my best options for this case? Any ideas how long the death claim process? Fees? I'm really glad I found this site. As a foreigner, I am confuse how this things works and my in-laws are obviously trying to take advantage of the situation but I didn't say anything back as I still respect them as my husband parents. The house my in-laws living is under my husband's name and his father they want me to pay the balance of the loan amount plus all the burial fees they paid.
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answered on Aug 24, 2017 at 00:17
edited Sep 14, 2017 at 10:19
@ curiousone

How to answer you when you have not answer my questions?
You have tons of issues!
I do not ask silly questions

Did your husband died Intestate (without a WILL)? There are Intestacy Laws. The EPF withdrawal is not going to be smooth. It may take more than one year or even more. If having children from a previous marriage, could complicates matters.

If you are a Filipino, you may understand what people would post further here. To explain to foreign wives from Vietnam, China, Thai, Cambodia is harder.

Is the house under Bank housing loan? There is insurance covering it. You never need to pay a single RM. What about your Long-Term Social Visit Pass (LTSVP aka spouse visa)? How is it going to be when it expired? There are urgent procedures now at immigration before it expires. There is a procedure that you MAY convert it to Permanent Resident (PR) due to the death of the spouse. It is available in some countries but I am not sure if is available here or not. In some countries the foreign spouse has to go back to her country once the spouse visa expired. How to claim house, bank accounts, EPF, SOCSO (if any) plus any type of personal insurances if you are forced to return to your country. The legal procedures would take time.

Start a new thread with your name or id, then discuss.
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