Bankruptcy issues

[jtanps]

Hi, I need help.

My hubby has chalked up an almost $100k of debts ever since he quit his job and tried to start a business which failed, he is still struggling with another business and he has not brought home any income at all for the past 2 years.

I am thinking of persuading him to declare bankruptcy since there is no way we can repay his debts. We no longer even able to pay of the minimum sum which comes up to 10k monthly. I only take home about 2k every month and I have 2 young kids to feed.

I am wondering if he agrees to declare bankruptcy, will this affect me in any way, eg, will my salary be required to service his loans as well. As I still have to pay for utilities (we are staying with his parents and sister and a maid who looks after the kids), diapers and milk powder, my salary is actually barely able to survive. I really am not able to help with paying off his debts.

Also, since he is doing his own business and business is not making money, will he be required to find a job?

Thanks in advance!

 

[Raider04]

Hi, I need help.

My hubby has chalked up an almost $100k of debts ever since he quit his job and tried to start a business which failed, he is still struggling with another business and he has not brought home any income at all for the past 2 years.

I am thinking of persuading him to declare bankruptcy since there is no way we can repay his debts. We no longer even able to pay of the minimum sum which comes up to 10k monthly. I only take home about 2k every month and I have 2 young kids to feed.

I am wondering if he agrees to declare bankruptcy, will this affect me in any way, eg, will my salary be required to service his loans as well. As I still have to pay for utilities (we are staying with his parents and sister and a maid who looks after the kids), diapers and milk powder, my salary is actually barely able to survive. I really am not able to help with paying off his debts.

Also, since he is doing his own business and business is not making money, will he be required to find a job?

Thanks in advance!

Bankruptcy is a personal issue but if you had acted as a guarantor for any of his loan then you will also be liable for the debts.

Once declared bankrupt, he must demonstrate the mean to pay off the debts before he will be discharged from bankruptcy.

Also bankruptcy has a serious repercussion on his credit standing, hence it will affect his future application for any loans.

 

[yamashita]

Hi, I need help.

My hubby has chalked up an almost $100k of debts ever since he quit his job and tried to start a business which failed, he is still struggling with another business and he has not brought home any income at all for the past 2 years.

I am thinking of persuading him to declare bankruptcy since there is no way we can repay his debts. We no longer even able to pay of the minimum sum which comes up to 10k monthly. I only take home about 2k every month and I have 2 young kids to feed.

I am wondering if he agrees to declare bankruptcy, will this affect me in any way, eg, will my salary be required to service his loans as well. As I still have to pay for utilities (we are staying with his parents and sister and a maid who looks after the kids), diapers and milk powder, my salary is actually barely able to survive. I really am not able to help with paying off his debts.

Also, since he is doing his own business and business is not making money, will he be required to find a job?

Thanks in advance!

Hi jtanps,

Like what Raider04 had said, bankruptcy is a personal issue and will not affect you in any way. However, do note that s 78 BA empowers the Official Assignee to seize personal effects of your husband and this may affect you indirectly.

On the credit standing of your husband, the Credit Bureau Singapore will keep a record of his bankruptcy for a period of 6 years and during this period, he may encounter difficulties in securing loans.

 

[alamakazam]

Bankruptcy is a personal issue but if you had acted as a guarantor for any of his loan then you will also be liable for the debts.

Once declared bankrupt, he must demonstrate the mean to pay off the debts before he will be discharged from bankruptcy.

Also bankruptcy has a serious repercussion on his credit standing, hence it will affect his future application for any loans.

is it a must for a guarantor? I mean who will be so good to be a guarantor for a bankruptee

 

[dlocenot]

is it a must for a guarantor? I mean who will be so good to be a guarantor for a bankruptee

He means guarantor for debts before declaring bankruptcy.

 

[dlocenot]

Hi, I need help.

My hubby has chalked up an almost $100k of debts ever since he quit his job and tried to start a business which failed, he is still struggling with another business and he has not brought home any income at all for the past 2 years.

I am thinking of persuading him to declare bankruptcy since there is no way we can repay his debts. We no longer even able to pay of the minimum sum which comes up to 10k monthly. I only take home about 2k every month and I have 2 young kids to feed.

I am wondering if he agrees to declare bankruptcy, will this affect me in any way, eg, will my salary be required to service his loans as well. As I still have to pay for utilities (we are staying with his parents and sister and a maid who looks after the kids), diapers and milk powder, my salary is actually barely able to survive. I really am not able to help with paying off his debts.

Also, since he is doing his own business and business is not making money, will he be required to find a job?

Thanks in advance!

I think it is a good option to consider, especially if the debts are too huge to repay. Of course it comes with inconveniences. You won't be directly impacted but as per the previous comments, you may want to check if you are the guarantor for any debts.

If his business is a limited company, there is no need to declare bankruptcy. But I believe in this case he's a sole proprietor.

 

[jtanps]

Hi everyone thanks for your feedback every one of them helps.
We have a hdb using bank loan, our joint accounts have no money in them, pending closure. He owns 2 cars which are under loan. Other than these I do not think he has anything that will affect me.
His debts are personal debts nothing got to do with his company.
Are there any other issues that I should take note, other than being his guarantor which I am not?
Thanks alot!

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[LocalGod]

raise capital... sell both cars, sell hdb pay off debt first. live back with parent.

declare bankruptcy not very good. cannot travel leh.. but up to u...

 

[dlocenot]

raise capital... sell both cars, sell hdb pay off debt first. live back with parent.

declare bankruptcy not very good. cannot travel leh.. but up to u...

I agree on disposing of the cars. It's a very big liability.

 

[3dfxplayer]

Sell the 2 cars first, even if he has no ability to pay up the outstanding loan. They are a massive drain on his finances, he will just go deeper into debt if he keeps them. There is no need to sell the flat because his creditors cannot touch his HDB flat anyway.

 

[KopRulez]

Hi everyone thanks for your feedback every one of them helps.
We have a hdb using bank loan, our joint accounts have no money in them, pending closure. He owns 2 cars which are under loan. Other than these I do not think he has anything that will affect me.
His debts are personal debts nothing got to do with his company.
Are there any other issues that I should take note, other than being his guarantor which I am not?
Thanks alot!
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I explain in layman terms to your questions.

If your hubby is proceeded with bankruptcy and he is adjudged a bankrupt by high court, all his existing bank accounts will be freezed and closed, including your joint accounts. You might already notice that some of his bank accounts are freezed/closed by now for default of payments.

His business will be liquidated, for a start, he can't manage a business or act as director of companies without approval of the Court or the Official Assignee.

As for your HDB flat (finance thru' bank loan), you can continue to service the monthly installment. But if you happen to default, the lender may repossess your flat.

His cars will be repossessed by his creditors. Most likely the vehicles has negative resale value if he has just bought his cares recently. I suggest to give up the cars as not to incur further repossession & redelivery fees, overdue installments fees, storage, repair or maintenance by the car shop and other arrears.

All his mobile lines, SCV, Singtel accounts under his names will be terminated.

If you are not his guarantor, basically you are fine.

Don't worry, after bankruptcy he can still lead a normal life like you and me, find a job etc... After one year or so, he can apply for travel overseas.

 

[alamakazam]

I explain in layman terms to your questions.

If your hubby is proceeded with bankruptcy and he is adjudged a bankrupt by high court, all his existing bank accounts will be freezed and closed, including your joint accounts. You might already notice that some of his bank accounts are freezed/closed by now for default of payments.

His business will be liquidated, for a start, he can't manage a business or act as director of companies without approval of the Court or the Official Assignee.

As for your HDB flat (finance thru' bank loan), you can continue to service the monthly installment. But if you happen to default, the lender may repossess your flat.

His cars will be repossessed by his creditors. Most likely the vehicles has negative resale value if he has just bought his cares recently. I suggest to give up the cars as not to incur further repossession & redelivery fees, overdue installments fees, storage, repair or maintenance by the car shop and other arrears.

All his mobile lines, SCV, Singtel accounts under his names will be terminated.

If you are not his guarantor, basically you are fine.

Don't worry, after bankruptcy he can still lead a normal life like you and me, find a job etc... After one year or so, he can apply for travel overseas.

nice to hear from experience

how about telling us how to repay when you are bankrupt? have you repay everything? or MUST one die die must repay all creditors?

after one year can apply travel, is after declared bankrupt or cleared of bankruptcy

 

[AndyS]

Hi everyone thanks for your feedback every one of them helps.
We have a hdb using bank loan, our joint accounts have no money in them, pending closure. He owns 2 cars which are under loan. Other than these I do not think he has anything that will affect me.
His debts are personal debts nothing got to do with his company.
Are there any other issues that I should take note, other than being his guarantor which I am not?
Thanks alot!

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My goodness! In such a state still own/keep/feed 2 cars which are still under loan installments ?!?!?!
What is he thinking?!?!?!
"Face" value do NOT and will NOT cost MORE than family, or the kids, or HIS OWN life if things turn for the WORST in future...
Since staying with parents now... sell the HDB flat as well...
If there are any insurance/endowment policies, SURRENDER them as well to get more CASH on hand...
AT LEAST there will be a chance to MAKE a COMEBACK in future!

 

[pitchaxistheory]

Cars and real estate are a liability in Singapore if the loans have not been fully serviced yet. Those two cars need to go...

Is face as important as feeding the kids? I wholesomely agree with Andy above.

 

[KopRulez]

nice to hear from experience

how about telling us how to repay when you are bankrupt? have you repay everything? or MUST one die die must repay all creditors?

after one year can apply travel, is after declared bankrupt or cleared of bankruptcy

alamakazam, uncle me not a bankrupt. But I have dealings with them.

Nope. If you are an undischarged bankrupt, the OA from IPTO will assist his creditors to realize as much assets as possible to pay to the creditors. If he is employed, usually he will be required to pay 15%-20% of his net salary (after CPF deduction) to his bankruptcy estate monthly. If got bonus, AWS, then have to pay 30% of the bonus after you received it.

Most of these bankrupts don't have to repay their debts in all. Some businessmen I know owe millions, but offer a composition of 80k to get discharge. A rough estimation is 25-30% of his total debt for OA's consideration in order to apply for discharge after 3 years.

Usually within the first year, he will be in red zone. Unless it is an official trip or compensation grounds, then OA will grant the approval of travel on case by case basis.

If he is in green zone (usually after 8 mths of prompt payment to OA), he can get instant approval to travel overseas.

 

[KopRulez]

Since staying with parents now... sell the HDB flat as well...
If there are any insurance/endowment policies, SURRENDER them as well to get more CASH on hand...
AT LEAST there will be a chance to MAKE a COMEBACK in future!

If TS's HDB flat have positive resale value, she/they can consider to sell to get some liquid cash before his hubby is made a bankrupt, but not after he is made a bankrupt, because they bought the HDB flat using bank loan, so can't sell it before bank's approval.

To conclude, have to act fast.

Note: For insurance/endowment policies with any cash value, if you surrender your policies prior to your bankruptcy within 3 years, you are to surrender this cash value to the OA into your bankruptcy estate. Only insurance policies which are paid using CPF is protected.

My advise is to keep any life policies for the benefits of his family members. Usually he is allowed by the OA to keep one such policy.

 

[alamakazam]

policy can be serviced by some other people?

KopRulez , you have any contacts that help people go bankrupt gracefully and to gain something or not lose too much my friend's dad know of such service but lost his contact

 

[KopRulez]

policy can be serviced by some other people?

KopRulez , you have any contacts that help people go bankrupt gracefully and to gain something or not lose too much my friend's dad know of such service but lost his contact

Yes, if the premiums is paid by a third party, you can keep it. But the OA has to know. Usually they will give green light. Other existing endowment policies is up to the OA discretion liao.

What you mean by "go bankrupt gracefully", or go smoothly you mean? Are you referring to those consultancy agencies? If you mean those, better don't spend further money on such services. Not worth it. What is the total debt of your frd's dad and how he want to "gain something and lose not much?". You can go private if you do not want to reveal it here.

There is two approach, 1. self petition for bankruptcy (deposit of $1,600 with the Official Assignee for the administration of the bankrupt's estate) or 2. wait for any of the creditors to proceed with the bankruptcy.

1. takes about 3-5 mths to finalize, while 2. takes anytime from 6 mths to 12 mths after the Applications for Bankruptcy Order is served.

 

[KopRulez]

Interesting to note during the writ of seizure and sale...

Items that bailiff (enforcement officers) usually look out for and paste stickers on your household items:

Sofas, dining sets, fridge, washing machines, TV, laptop/desktop PC, DVD/VCD players, sound systems, antiques, microwave oven.

Things safe to keep: cabinets, kitchen cabinets, rice cooker, air-con, any of your tools of trade, bed, cooking utensils.

If you got expensive arowana, champion japanese kois, they are entitled to seize them for auction, but they have to bring their own water and container along.

 

[Minmin_34]

Sorry to hijack can i also ask if u r a bankrupt r u able to apply for a internet subscription with the telcos? I stay in a rented place n i will need internet access