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How will bankruptcy impact the spouse?

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asked on Jul 27, 2014 at 04:16
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edited on Mar 17, 2019 at 08:10
 
My husband has been filed bankruptcy due to debts as a result of the business down trend. Our house and car are under my name, will I be impacted?

With the bankruptcy, does it mean we need to pay off all the debts then only can clear the bankrupt status? Or after 7 years there will be automatically cleared off?

Beside I am the guarantor for my husband's car loan. He was not able to pay off the remaining balance, so will I be impacted as well? Or I just need to go to the bank to request for installment payment will do?

I need some advice please.
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answered on Jul 27, 2014 at 13:42
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edited Mar 17, 2019 at 08:14
 
Beside, I am the supplementary card holder of my husband's credit card too. If he is not paying am I affected as well?

If I go negotiate with the bank for installment payment, is this okay? Or will I be jailed?

What happen to my properties?

I really need advice please...
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answered on Jul 27, 2014 at 23:24
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edited Mar 17, 2019 at 08:19
 
Calm down...

I am not a lawyer but reading through this forum, you would know that:

1. If a property and car are not under your name, you are not directly affected.

2. Pay all the debts then only can clear bankruptcy status.

3. There is no such thing like after 7 years "auto clear" unless your creditor let you "go", but after a period of years, negotiate with the creditors for "discounted" amount.

4. Just sell off the car now before he is made a bankrupt. Otherwise the bank will chase you for the balance when/if the car is auctioned out below market value as you are the guarantor.

5. Credit card.. Cut your card into two now and send it back to bank. Let them transfer the amount to the principal card holder. You can never negotiate with the banks if the amount is "big". There is no jail for bank loans if you default.

My suggestions:

Either sell or rent out your current properties, family shift and rent elsewhere. The tax dept can come after you unless you can prove you are earning enough to pay for it on your own.

You have to really establish whether your husband has been threatened to be sued till bankruptcy or in the process of being made a bankrupt. Just be calm and take time to read thru all the postings in this forum. It will give you some ideas of what is going to happen next..

Of course when husband is being made a bankrupt, wife will be "affected" somehow, but not in the direct debt.
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answered on Jul 28, 2014 at 20:14
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edited Mar 17, 2019 at 08:25
 
Thanks... If I understand correctly, as long as I'm not the principal credit card holder will not be impacted right?

The car already been auctioned by the bank but still owe the bank RM20k and I'm the guarantor. I am planning to negotiate with the bank to pay it by installment.

I not sure whether my husband has already been sued bankruptcy or not as I saw one letter from a lawyer with bankruptcy number so I guess should be, yes.
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answered on Jul 28, 2014 at 21:25
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edited Mar 17, 2019 at 08:30
 
As a supplementary card holder, you have to pay what have been used by you... unless the amount has been transferred to the principal card holder. You need the credit card statement to justify.. You are not responsible for principal card holder debts.

Negotiate the RM20K with the bank, maybe can convert this amount for a term loan with lower interest.

A piece of advise I wish to share:-

Whatever happens, find closure, don't blame this or that anymore, most important is the family is around. Be frugal and one day in the future, things will be back to normal again. A bankrupt life now is not much different from a non-bankrupt. Just live frugally and take this episode just as a "redistribution of financial means".

Be happy and we will all live longer..
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answered on Jul 28, 2014 at 22:02
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edited Mar 17, 2019 at 08:33
 
Thank you so much...

At least now I have a clear picture.. Sure as long as family is around, as long as we are still alive everything will be back to normal one day.

My husband is trying his best efforts to overcome this but unfortunately he can't make it as nowadays everything also need money and stuff are so expensive.

Luckily I have a job and am still able to handle our daily expenses.. So I will go and negotiate with bank for the term loan and for the rest of debt will see what we can do to settle it slowly.

My husband currently working at overseas, he won't be able to go over to settle all the documentations. Any advice, how I can help?
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answered on Jul 29, 2014 at 03:15
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edited Mar 17, 2019 at 08:44
 
My husband currently working at overseas, he won't be able to go over to settle all the documentations. Any advice, how I can help?

Not within my experience to advise or suggest anything. Perhaps some forumers out here can share and offer some tips.

All I can add on is that there are advantages and disadvantages while being overseas now, inform him that when he is made a bankrupt, take this opportunity to declare all his debts, especially various loans, credit cards debts, business creditors (all).. Jabatan Insolvensi Malaysia (JIM), Official Assignee (OA) will try to contact him. He has to put all these figures up and they will arrange for a "all creditors meeting", else there is a possibility that after being discharged from this bankruptcy, another creditor may file a new petition for bankruptcy say in 10 years time..

Whether you CAN file on his behalf with supporting documents or should do, I really don't know. Go to Malaysian Bar Legal Aid for advice, just say your husband has absconded and you do not know how to move forwarded legally. But I have some reservations about you "exposing" yourself to HIS creditors. They will have your name, address, etc, etc.. and he may have some "unusual debts" that he may not have told you.

From what I read in this forum, there are different "expiry time" for different types of loans for creditors to file for bankruptcy.

Click "search" at top heading of this page, type bourkey.. vkpc.. notalawyer.. their comments and advice are very constructive and helpful.

Good Luck..
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answered on Jul 31, 2014 at 00:22
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edited Mar 17, 2019 at 08:47
 
I think your husband not yet a bankrupt from information you gave. If that is true then you better go check whether there are further hidden liability under shared name with him. If yes get rid of it as soon as possible, sell it etc...
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answered on Jul 31, 2014 at 03:13
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edited Mar 17, 2019 at 08:50
 
@bbuddy

Yes, sure I will going to check on it and see.

One thing that I want to clarify is my husband has a property that is shared or joint with one of his uncle, my husband is under the 2nd name, so will this property will be take over in case of bankruptcy?
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answered on Jul 31, 2014 at 03:58
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edited Mar 17, 2019 at 08:56
 
Concur with you @bbuddy..

@linlin,

More technical situations requires some useful sharing of ideas by people who have gone thru those similar ordeals..

Joint or shared property is 50% owner so he has to declare it to his Official Assignee or Jabatan Insolvensi Malaysia, otherwise "I think" it is a serious offence.. Even if you don't declare, those people can also check it out. So be prepare for this eventuality..

I reply your posting is not because I know how to avoid bankruptcy rather I lost my wife because she couldn't stand the stress of losing house and cars, she fell seriously and terminally ill. That's why I advise you not to over stress yourself mentally.. Children can also be affected too without expressing themselves.

So, whatever will be will be, most important keep family together..!!

So, by now, much of your doubts and fears should have subsided, just think and act rationally and you will pass thru this bad ordeal..

Good luck..
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answered on Jul 31, 2014 at 15:56
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edited Mar 17, 2019 at 08:58
 
Yes, you are right.

Don't worry, I won't stress myself as I need to stay strong and think rationally to help my hubby to overcome this critical situation.

Before that I have some doubt on some of the things that need clarification. And thanks for all the advice given. At least I have a clear picture of what's next.
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