Can I avoid being bankrupt ?

[ifanboy]

Need some guidance from friends who have any experience.

I am an expat who has been running a business for around 5 years now. In 2014 had some financial trouble with the business and I took a personal loan to pay my staff. The bank put forth a bankruptcy application against me in 2015 when I defaulted in payments.

The high court however allowed 3 adjournments as I set up an arrangement with the bank to pay them va installments. I have been paying them since then. Last month my installment got delayed by a couple of days( I made the payment but after 3-4 days of the end of the month ) and the bank has said they will be asking the court to make me bankrupt in the next hearing.

A summary of my case -

1) The initial amount when they applied for bankruptcy was $23,000
2) I set up an arrangement with the bank to pay them $2000 every month. The bank got the court to adjourn the hearing 3 times to allow me to pay up.
3) I got delayed in making my last payment by a few days.
4) Now after all the payments, the amount is reduced to $8000. So if I pay them $8000 in full before the next hearing ,they will withdraw the case.
5) The next hearing on the case is in 1 weeks time.
6) I have invoices to the tune of $10K that the clients would be paying in 3 weeks time.

However the bank has told me that they will be proceeding with asking the court to make me bankrupt. They have given me the option to either settle in full or become bankrupt. They are not keen to give me any more time. Since I am a director of a company, the DRS scheme won't apply to me and I would be made an instant bankrupt.

A few questions that come to my mind, that I will need advise on -

1) Can I be made bankrupt if I owe only $8000 to the bank ? Initially it was $23,000. The amount got reduced as I have been paying.
2) I am 100% sure that I can pay the remaining $8000 in 3 weeks time as my funds are coming in. Is there anything I can do to get the hearing adjourned by a month or so?

Thanks

 

[hypertrophy]

Crowdfund to raise 8k, promise lenders to pay 9k back in 1 month.

 

[lovesleeping1981]

Ask a proper lawyer. I think less than 10k cannot make a person bankrupt.

 

[Mecisteus]

8k is not really a big sum of money. Get your debtors to pay you earlier or raise the amount from close friends or family members.

http://singaporewatch.org/?p=959

 

[Happygirlzz]

What?! Owe 8k put people in bankrupt?? I dont think so?? But i not lawyer, need to hear what lawyer says... and u mentioner last time owe 23k ...23k make a person bankrupt? But u mentioned if pay them 8k in full, withdraw the case.. 8k is not alot .. maybe can borrow from family, friends, relatives first ?

 

[IronMac]

You can't get a bridge loan or a factor company to buy your receivables?

 

[Happygirlzz]

How old is thread starter ? An d u mentioned business didnt do well, maybe sell away ur business n at least get an amount at hand first so tt u cn clear the debts?? If not bankrupt even worst, got record etc, plus want continue business also cannot one right?? So sell off first? Idk???

 

[ifanboy]

Thanks for all the suggestions.

I am 30.

Cant sell the company as it is not in good condition currently and its a technology company and will take time to sell to a prospective buyer.

I checked the law online. A bankruptcy application can be filed if the amount owed at application time is more than 10K. But I am not sure if they can still proceed, if it falls below 10K before the hearing date.

I am trying to raise funds, but might be difficult to raise the complete 8K as I dont have a lot of time left. I am trying to convince my clients to pay me up sooner.

 

[Happygirlzz]

Thanks for all the suggestions.

I am 30.

Cant sell the company as it is not in good condition currently and its a technology company and will take time to sell to a prospective buyer.

I checked the law online. A bankruptcy application can be filed if the amount owed at application time is more than 10K. But I am not sure if they can still proceed, if it falls below 10K before the hearing date.

I am trying to raise funds, but might be difficult to raise the complete 8K as I dont have a lot of time left. I am trying to convince my clients to pay me up sooner.

I think now changed already, not 10k, but 15k?? check this link (channelnewsasia news article): http://www.channelnewsasia.com/news/business/singapore/changes-to-bankruptcy/1840304.html


quoted: " The reforms also include requiring debtors to owe at least S$15,000 to be declared bankrupt, up from the current $10,000. The Law Ministry said this is to take into account changes in income levels and inflation."





aside from asking clients to pay up sooner, can borrow from family..relatives...friends first lor??

 

[Mecisteus]

Ask your friends if they need to purchase any big ticket item ie 9k or 10k worth. Use your credit card to sign and they will pay you 8k now.

You can sign up a hire purchase installment with the banks at 0% for 6 or 12 months. The excess amount above 8k to sign can be mutually agreed within the 2 of you. It has to be substantial excess, if not there is no incentive to pay 8k in cash.

Too bad I don't have anything to purchase now.

 

[Departure81]

Ask your friends if they need to purchase any big ticket item ie 9k or 10k worth. Use your credit card to sign and they will pay you 8k now.

You can sign up a hire purchase installment with the banks at 0% for 6 or 12 months. The excess amount above 8k to sign can be mutually agreed within the 2 of you. It has to be substantial excess, if not there is no incentive to pay 8k in cash.

Too bad I don't have anything to purchase now.

Unless close friends most probably won't help you do this though. Big ticket items they would probably rather sign themselves, can earn points/ miles, especially if they are paying upfront cash. But ya, maybe TS can borrow from friends, offer them some interest, cheaper than lending from bank..

 

[havetheveryfun]

since there's going to be a hearing, try to gather the proper evidence that you have funds coming in soon ? try to get your customers or clients to testify if possible or something.. but not sure whether they know your situation though for later if they know you might be a bankrupt soon they don't want to do biz with u anymore...

basically try to convince the judge that you will be able to pay up soon and need this extension.. but of course it is still best if u able to borrow from someone else first if possible like what others have said

or find legal money lenders out there ? then pay back quickly after 3 weeks. of cos gonna suffer a bit of money losses due to the high interest they charge

 

[keanteac]

Need some guidance from friends who have any experience.

I am an expat who has been running a business for around 5 years now. In 2014 had some financial trouble with the business and I took a personal loan to pay my staff. The bank put forth a bankruptcy application against me in 2015 when I defaulted in payments.

The high court however allowed 3 adjournments as I set up an arrangement with the bank to pay them va installments. I have been paying them since then. Last month my installment got delayed by a couple of days( I made the payment but after 3-4 days of the end of the month ) and the bank has said they will be asking the court to make me bankrupt in the next hearing.

A summary of my case -

1) The initial amount when they applied for bankruptcy was $23,000
2) I set up an arrangement with the bank to pay them $2000 every month. The bank got the court to adjourn the hearing 3 times to allow me to pay up.
3) I got delayed in making my last payment by a few days.
4) Now after all the payments, the amount is reduced to $8000. So if I pay them $8000 in full before the next hearing ,they will withdraw the case.
5) The next hearing on the case is in 1 weeks time.
6) I have invoices to the tune of $10K that the clients would be paying in 3 weeks time.

However the bank has told me that they will be proceeding with asking the court to make me bankrupt. They have given me the option to either settle in full or become bankrupt. They are not keen to give me any more time. Since I am a director of a company, the DRS scheme won't apply to me and I would be made an instant bankrupt.

A few questions that come to my mind, that I will need advise on -

1) Can I be made bankrupt if I owe only $8000 to the bank ? Initially it was $23,000. The amount got reduced as I have been paying.
2) I am 100% sure that I can pay the remaining $8000 in 3 weeks time as my funds are coming in. Is there anything I can do to get the hearing adjourned by a month or so?

Thanks

Can you talk to them and negotiate with them ?
I don't think bank want to waste lawyer fees to sue you for so small of amount.

 

[chuanz]

Can you talk to them and negotiate with them ?
I don't think bank want to waste lawyer fees to sue you for so small of amount.

The creditor will usually bill all cost to the debtor. So the current outstanding $8k will have to add on the legal fees (and default interests).

And if the bank is proceeding with the bankruptcy petition (BP) over this "small amount", there must have been quite a bit of history between TS and the bank then what's transcribed here...

IANAL

 

[therat]

http://forums.hardwarezone.com.sg/money-mind-210/loanshark-advice-needed-5275231.html

TS started a thread on 4 Jan 2016 (LoanShark - Advice Needed !) mentioned he borrow 20 group of loanshark and run an advertising and marketing business.

Now 2 April 2016, become Bank loan?

 

[Mecisteus]

http://forums.hardwarezone.com.sg/money-mind-210/loanshark-advice-needed-5275231.html

TS started a thread on 4 Jan 2016 (LoanShark - Advice Needed !) mentioned he borrow 20 group of loanshark and run an advertising and marketing business.

Now 2 April 2016, become Bank loan?

Good CSI.

I think TS is trying his luck if anyone will write an IOU and lend him money.

Just follow my suggestion above. Get him to sign a product/service worth 9k and above using his CC. Give him 8k cash. Don't need to worry about IOU.

 

[havetheveryfun]

http://forums.hardwarezone.com.sg/money-mind-210/loanshark-advice-needed-5275231.html

TS started a thread on 4 Jan 2016 (LoanShark - Advice Needed !) mentioned he borrow 20 group of loanshark and run an advertising and marketing business.

Now 2 April 2016, become Bank loan?

he did mention he only paid off half of his bank loan in that thread and the remaining half to be paid in instalments ?

 

[therat]

he did mention he only paid off half of his bank loan in that thread and the remaining half to be paid in instalments ?

true
but he also mentioned

I discussed with a friend and he lent me $20,000. I settled 15 out of the 20 lenders. Now I still owe around $8-10K to 5 lenders.

 

[ifanboy]

Ok. I had my hearing today.
The banks lawyer told the court that they wanted to proceed with the bankruptcy actions.

But seems there is a pre-bankruptcy Govt scheme called DRS ( Debt Recovery Scheme). So the case is adjourned for 6 months to evaluate my suitability for this scheme.

So this buys me some extra time. I am sure I will make the full payment in the next couple of weeks and avoid the whole thing together.
Thanks all for your support.

Cheers!!

 

[Happygirlzz]

Ok. I had my hearing today.
The banks lawyer told the court that they wanted to proceed with the bankruptcy actions.

But seems there is a pre-bankruptcy Govt scheme called DRS ( Debt Recovery Scheme). So the case is adjourned for 6 months to evaluate my suitability for this scheme.

So this buys me some extra time. I am sure I will make the full payment in the next couple of weeks and avoid the whole thing together.
Thanks all for your support.

Cheers!!

Ok good to hear.. cheers.