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Debts over RM80,000. How does the Statute of Limitations apply to my debts? Can I avoid bankruptcy?

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asked on Jul 16, 2014 at 03:41
by   Bladlerunner
edited on May 12, 2016 at 05:12
 
Hope you all good people can offer some advice and/or share some experiences.

I am coming 60, vanish from any radar since May 2004. I was given 3 "Preapproved" credit cards in 1988:
Bank A (foreign)  - Limit RM20K can offer
Bank B (local) – Limit RM10K
Bank C (finance) – Limit RM10K

Dutifully I maintained them well till 2003, a failed business owing an overseas supplier RM150K. Sold off any assets and the monies, set it aside for 4 school going children and "vanish", Renting rooms/houses every few years, even now. Wife died in 2004 due to lack of proper medical treatment. Doing odd jobs for the past 11yrs, now a hawker earning enough to pass the days.

2 weeks ago, I discovered my overseas supplier has gone bankrupt 3 years ago! I believe there won't be any bankruptcy against me anymore. EXCEPT for the credit cards debts.

In 2008, I have checked, that the cards debts have snowballed to RM80K++, no way I can settle. My last payment to any banks was in April 2004.

I went to immigration last week to check if I can make a passport to visit an ailing uncle in Bangkok, I was told that I can.

My questions are:

1. Could the banks have obtained judgement against me years ago but did not proceed further, but wait until the snowballed amount exceeded RM30K then only proceed for bankruptcy now (Bank B & C)?

2. Am not clear of the 6 years limitation.

3. And now confused of the 12 years limitation. Does this mean that if the bank has obtained judgement in 2010 (before 6 years is up) and then before another 12 years is up from judgement date (in 2010), file for bankruptcy proceedings when the amount is over RM30K?

Please share and enlighten, I thank you all.
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answered on Jul 16, 2014 at 14:08
by   vkpc
Although it is possible that you can still be bankrupted, it is very unlikely based on your description, the extended periods and from our experiences.  Do not contact the banks!
Banks has priorities to bankrupt bigger cases than yours.
Relax and enjoy your vacation.
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answered on Jul 16, 2014 at 16:45
by   Bladerunner
edited May 12, 2016 at 05:26
 
@vkpc

Thanks a lot.. real reassuring. I have been on the "run" for past 11 years. Life is just as usual day to day, it is just sad that I could not attend the funerals of some relatives without a passport.

By the way, your comments in this forum are direct and helpful, sometimes hilarious. Though some people do not see the practicality of your views.

Have a great time helping we people in stressful time. Thanks.
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answered on Jul 16, 2014 at 20:22
by   3k buddy
edited May 12, 2016 at 05:33
 
If I am not wrong the bank can only charge you interest for the first 6 years, after the 6th year the bank cannot charge any interest base on the Limitation Act 1953. Is it correct? Please advise to confirm.
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answered on Jul 17, 2014 at 02:28
by   Bladerunner
edited May 12, 2016 at 05:37
 
The crucial point is that even if the last payment to banks is in April 2004, a RM10K "debt" could have snowballed to well over RM25K in 5 1/2 years. The Judgement debt in 2010 could have included "Principal + Interest + Interest." Before I defaulted in 2004, my actual spending on the 3 cards was below RM20K, the rest was interest on interest, late payment charges, legal letters "sent", etc, etc. Don't know what were the other misc charges. Bank A offered to convert to term loan at lower interest rates but the amount has already snowballed, making the monthly amount repayment no longer within my means.

I know I am not writing with verified facts but I dare not call the banks or Jabatan Insolvensi Malaysia (JIM) for verification, did not dare to stir up the hornets nest...

Yes, I have read in this forum, that after 6 years no further interest can be charged, but at the point of judgement debt, the amount could have been very high already, making it reaching over RM30K very fast. And IF, they have patience, apply for another 6 years extension, wait for 5 1/2 years before 6 years period is up.. file for bankruptcy, well within their legal limits.

It is like using good money chasing for bad money, but cannot predict what some banks can or would do. The bank are rich, and their lawyers are laughing away.. with their monies!

Only thing to do now is to try to make every day a worthwhile day..

Thanks for everyone input.. much appreciated!
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answered on Jul 17, 2014 at 16:51
by   3k bubby
edited May 12, 2016 at 05:39
 
I really appreciate someone who is reading this can explain with example showing us how it works, meaning 6 years and extension another 6 years and how the principle and interest can be charged for the first 6 years?
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answered on Jul 17, 2014 at 22:26
by   Bladerunner
edited May 12, 2016 at 05:40
 
@vkpc

Is my "assumption/perception" on how the banks may work on the above correct or not? Different other scenarios could occur. But I, for my case, could not discount this particular set of scenario applying to my defaulted amount as it is neither too high or too low, making the above assumption possible.

You wrote:- "Although it is possible that you can still be bankrupted" actually prompt me to figure out what possible scenarios can affect me.

Your comments are most appreciated. I, Thank you..
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answered on Aug 27, 2014 at 09:38
by   vkpc
Is my "assumption/perception" on how the banks may work on the above correct or not?

Correct.
If a creditor did not sue, can no longer sue after 6 years from last payment or date of letter or demand.
If sue and get judgment, got 12 years to make debtor a bankrupt. After 12 years, judgment can no longer be used.
Although interest stops at 6 years by law, banks "buat bodoh" and continue to charge you interest in statements after 6 years. This extra interest can be deducted back when they file for Proof of Debt with JIM.
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answered on Aug 28, 2014 at 15:52
by   yen yen
edited May 12, 2016 at 05:41
 
@Bladerunner

Did you marry again after your wife died?
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answered on Aug 28, 2014 at 18:06
by   Bladerunner
edited May 12, 2016 at 05:45
 
@Yen Yen

Yes, I remarry legally at Thean Hou Kong Kuala Lumpur, why? You know me? You a relative of mine? My deceased wife is also "Yen."

Reading thru recent postings I have stated I remarry and have also divorced.

You have the same problem?
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answered on Aug 28, 2014 at 19:09
by   yen yen
edited May 12, 2016 at 05:49
 
I dunno you. Why did you divorce your 2nd wife?

What kind of food you sell?
What car you drive now?

How much is your BMW worth now?
Are you looking for a 3rd wife?
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