BANKRUPTCY

[sleepless]

Can anyone tell me if my husband is gonna declared bankrupt, will i be made as one as well.

i do not own banks any $$$ neither i have any sub-cards from him.

My only worry is if i am too declared as one, how am i going to feed my 3yrs old daughter.

What is the whole procedure before he is made bankrupt? Will debt collectors harass me at home or workplace???

I just need to know to get prepared for the worst. Please help.

 

[wlchoong]

Hi,

You will not be decalred bankrupt. I have a client who is a bankrupt and could not have a personal SIM card for his calls. He is not allowed to travel out of Singapore (I think). He is not alloed to buy any insurance expect using his Medisave to enhance his and his family's medical coverages. His wife is not a bankrupt.

to delcare bankrupt is to incur above $10,000 debts.

I am not sure about the debtors though. But i believe that when the person is bankrupt, he has to work to pay off the debt monthly until he is fully discharged. If he could not pay up, maybe have to wait for 5 years before he is discharged. I have met someonw who bought a car and could not afford the isntallment, hence delcared bankrupt. He has to pay back to the bank. the debtor did not come to his house to ask for payment.

I truly encourage you to discuss with your husband on delcaring bankrupt becasue of all the cons. He will lose his freedom. He will have a bad record when looking for jobs as one of the question is whether he has declared a bankrupt before. Also, the moral will be low.

maybe you can find out more from the banks or some website like CPF or MOM?
I may not understnad the situation but i hope this helps.

 

[sleepless]

Hi Micar!

Thanks for your reply. I am really greatful. At least, I know my gal will be safe. i am eased. She can still go school when my humble pay!

Actually, my husband has been paying since 10yrs ago when i met him. from 100k to current at 40k. We can no longer keep up with the horror interest rolling and the banks just issue us a demand letter without any chance. We just miss payment for 2mths.

The debt collector who represent the banks charge us with another interest as high as 35% and demand us to pay in full. I think is a matter of time he will be declared.

We tried to sell our HDB flat but our agent gave up on us. Too difficult to sell off.

Even when we seek SCC, the monthly loan they propose seems too much for us to bear. We are not running but is left with no choice.

Thanks so much for your reply, it means so much to me! Thanks!

 

[poopoo]

Hi Sleepless,

I am not very sure for the entire process, but I used to work with a local Bank before.

Once you declared bankrupt, the ‘Officer Assignee’ will send out a notice to all bank to freeze all the account under his name, either a personal account or a joint account.

When there is any salary earned which credited into the account, the bank will take out all the money and issue a bank Check to the ‘Officer Assignee’.

The ‘Office Assignee’ in turn, will distribute the money some to your debtor and some to you.

Sorry this is only what I know.

 

[wlchoong]

Hello Sleepless,

I can understnad your situtaion. the interest payment awaits no man. the compounding effect is really trememdous.

Why is it that the property agent gave up on you?

 

[rojakqueeny]

First,a debtor or any of his creditor can request for a advisory and mediation service to be provided. A debtor may be able to stave off bankruptcy all together and as such avoid the disabilities that would be imposed on him in the event he is adjudged a bankrupt. Creditors, on the other hand, will be able to recoup some if not all the debts owed to them. Recovery of the debts may also be faster.

In the event if he is made a bankrupt, the person acting for the official assignee wld request him to be down to listen to a talk of the "To do/dont" while they are a bankruptcy. As a bankruptcy, he would have to file his income and expenditure statement and he has to work in order to pay the monthly agreed amt which they had worked out for him. If he wants to travel out/sell his flat, he would have to apply for permission. While he is a bankruptcy, he is not allowed to borrow money and banks wld be informed of his status.

Certain property is protected against your creditors by law, which means it cannot be sold or taken over by the Official Assignee. Such properties include trust property, HDB flats, CPF contributions, necessary household furniture, personal effects, limited tools of trade, life insurance policies which are expressed to be for the benefit of your spouse or children and compensation awarded for personal injuries or wrongful acts against you.With regards to your debtors coming up to your home, they are not allowed to do that and neither wld you be made a bankrupt or be responsible to paid the said monies which is own by ur hubby unless the debts comes under your name and you are been sued by the debtors.

To facilitate easy and regular payments of your income contribution, the Official Assignee will allow him to operate a savings account and his contribution will be deducted periodically through GIRO. The OA wld not deduct all his monthly contributions, they would only deduct the amount that he has to pay monthly.

Annulment of your Bankruptcy Order is possible when:
• debts are paid in full (under Sections 123 and 123A or;
• offers of composition or schemes of arrangement are accepted by the creditors (under Section 95A).

It does not necessary means that you would be discharged once u are a bankruptcy for 3yrs. It really depend on alot of factors before the court decide to discharge you.

Hope the above helps.

Tk care =)

 

[rojakqueeny]

As for freezing your bank account, it is only temporary. After all the necessary checks, they wld unfreeze the account. Regards to your flat properties, perhaps you can try to float ur difficulties to the town council and see what they can do for you. I cant advise too much on your flat issue as it is not very clearly stated. But i do hope that my post related to bankruptcy wld help you.

 

[sleepless]

hi, all! Thanks for your reply. It definitely helps me to see a clearer picture of what i will be facing in no time.

My husband is a regular. I presume he will be out of job once the bank seize his account or to inform his employer.

Is there any other mediation service other than SCC?

As for my flat, my agent has been putting up ads for us since two months ago. only 3 callers came n go. Some heard is at low level, they hang the phone. Even we want to sell at valuation, no one seems interested.

Since some banks has already issues us the letter of demand, i think we will hold on to our flat. At least, we still got a roof. N we will not need to worry if he is declared as a bankruptcy before we buy another.

 

[hello88]

Hi sleepless,

have ur husband tried any form of discussion with the banks? My friend had some kind of discussion with the banks and showed them that she had no means to pay the debts (mainly from credit cards & car instalments) and I dont know what happened next but the banks stopped taking actions against her since she already told them she could only be declared a bankrupt as she cant pay them a cent.

 

[sleepless]

ya... he has called to discuss with banks. Some agreed while some are nasty. They told my husband since u cannot pay, we have no choice but to issue the letter of demand.

 

[rojakqueeny]

Hi sleepless;

The banks wld eventually understand that even if they serve the letter of demands or judgement letters/writ of summons, at the end of the day, if your hubby do declare as a bankruptcy, the court still rules over the bank.

 

[harpie17]

Hi Sleepless,

If your husband is made a bankrupt, you will not be made a bankrupt as well. Unless you stood as a guarantor for his loans. If that is the case, there is the possibility that you will also be made a bankrupt by the creditors.

All the bank accounts under your husband's name will be closed upon an issue of a letter from the Official Assignee. The Official Assignee will then give permission for the bankrupt to operate a bank account with the POSB. That is to facilitate the employers of the bankrupt to credit the salary to. It is also from this bank account that the bankrupt will pay his monthly instalments to the OA.

In Singapore, there is no such thing as automatic discharge from bankruptcy. If a bankrupt is co-operative and has been paying his monthly instalment to the Official Assignee regularly, he will be categorised under the "Green Zone" and hence, there will be a chance that his case will be considered for discharge. However, if the bakrupt is not cooperative and falls under the "Red Zone", chances for his discharge from bakruptcy is lower.

But your husband has to be prepared. It is not within a very short period of time that he will be discharged from bankrtupcy. It takes time and there are also many inconveniences that he has to face. One of which is to travel overseas. If he managed to find a job overseas, he can obtain permission from the OA to go overseas to work and this permit have to be renewed regularly with the OA.

For more information on banruptcy matters, you may wish to visit the website of the Insolvency & Public Trustees' office to have a clearer picture. The website is www.minlow.gov.sg/ipto.

I hope this helps.

 

[harpie17]

sorry. the website should be : www.minlaw.gov.sg/ipto

 

[sleepless]

Hi, Da wife!

Thanks so much for your advice. I am glad that i does not stood as a guarantor to any of his accounts.

Right now, i am just counting the days that we will be facing soon.

I be back here posting what i will be facing with you all.

 

[harpie17]

Hi Sleepless,

No worries. u can also e-mail me at [email protected] so that we can share more in pte.

Dun worry so much....

 

[dr3am3r]

Just curious, will the public trustee observe the wife's bank accounts and spending habit as well? A friend seeked for my help to open a bank account under my name, because her husband is a bankrupt and she doesn't even dare to deposit money given to her by her grandparents although it's just 4 digits. She's worried that the public trustee will expect her to pay for her husband in order to full settle his debts in a shorter time.

 

[maple_egreen]

I am also curious, once married, do husband and wife automatically share liabilities?

Say husband had debt before he met wife, after marriage and if husband cant pay, will wife have to give up her possessions and pay for him?

 

[rofthelper]

Just curious, I heard banks are not allowed to garnish the debtors' salary as protected by secrets act. Is that true?

 

[pasir_ris_beach]

wow. the thread had been lingering on for more than one year.

 

[joloke]

Hi to all,

that is not true, but just that banks have reduce on this practice, they try not to garnish the debtor's pay unless they need to. The wife do not need to pay for the bankruptee's debts if she refuse to. But their house can no longer be sold off and if the husband cannot possess any asset she will have to suffer as well only untill her bankrupt husband is fully release from the list. But of course they will have hard time paying off.. If that is the case, why not approach CCS? (Credit Counselling Singapore)? I've got friend who approach CCS as it is supported by MAS, so banks will have to answer back to CCS if they do not approve the debtors to go under installment. CCS helps to draft appeal letter to all banks for a lower installment for next 5 yrs o so, but the only thing is if 1 bank reject and feel that the debtors do not need to go under such plans, the appeal will lapse for the rest, and there is a fee to pay to approach CCS and also the debtor need to undergo a couple of counselling before they write the appeal.

 

[ms_bubly]

hi all,

i have some questions nt sure if anyone could help.
My husband had passed away a year ago and,to my knowledge he has afew companies under his name. Some of them, have afew shareholders.

What i wanna ask is,will i be liable to be responsible for any possible debts my late husband had? For any personal loan or company's debts, will i be responsible to pay for all these? I have no participation in his dealings in the companies and therefore i did not sign on any documents for any loans. Am i liable for his debts now that he's gone?
And, is there any protection for women in Singapore against such issue?Like, protecting us frm any possible liabilities for late husband's debts??
We do not have any property.

 

[homama]

ms bubly, in the law of business and company, u are not liable for your husband's debt be it pte ltd or ltd company. no worry!

pls go thru your enquiries with a lawyer ba instead of asking the questions here... over here, it might not be too much of help to you cos i dun think anyone here is really a professional... my view...

 

[tkn]

Hi,
Any exception for bankrupts to have a credit card? I am going on a business trip but have no credit card. How?

 

[pasir_ris_beach]

Tkn,
My husband is undischarged bankrupted too.. He is able to go for work trip overseas and his O.A dont allow him to hv a corporate credit card, so he no choice but to use cash.

U have to use yr cash first and then claim back from your company since u r going for business trip.

 

[pasir_ris_beach]

Anyone who is on the debt repayment scheme that is under the IPTO? have some queries to ask.

is the DRS same as the bankruptcy?