Everyone is on their toes. There are talks that banks may fail, that is why our Monetary Authority is stepping in. As if people are not in enough dire straits already. Some people said as long as it can be solved with money, it will not be a problem. But now one wonders if one can even have enough money to survive, let alone live.
Recently, I have been studying the Bankruptcy Act rather thoroughly. I got a big scare due to my situation a few months back, and now with accounts of friends filing for bankruptcy and being sued, I thought it is wise to know what kind of recourse there is just in case. The Act states the definition of a bankrupt, procedures and when someone will be declared bankrupt, what the Sheriff will do to a bankrupt and limitations on an undischarged bankrupt, as well as limitations even after one has been discharged.
Essentially, once a person is going to be sued for bankruptcy (or self-declare), there will be a court order, as well as a Writ of Seizure and Sale. Thus, all movable property like car, television, furniture, computer, will be sent to the Sheriff's office and auctioned off. Then a Garnishee Order will be levied on the salary, and the salary will then be transferred directly to the banks, with just a small portion for the living expenses.
Even the passport will be confiscated, and any overseas trips will have to be given permission by the Insolvency's Office. In other words, no more leisure trips! These will continue for months and years until the person has paid back every single cent, plus interest, plus late charges, plus whatever legal fees incurred.
I have a friend who is going to file for bankruptcy. She recently lost her money in bonds due to a certain bank becoming bankrupt. She is holding a relatively good job with pretty comfortable pay, and has numerous credit cards and credit lines to her name. But since the loss, she has been unable to meet her credit card payments. Of course banks start calling her and issuing her letters.
As I have mentioned, banks are the most merciless of the lot. They give good promises to get you, then turn their backs on you the moment you run into trouble. Which is why I ended up cancelling most of my facilities. Anyway, the banks wanted to do a Writ of Seizure and Sale at her place, which is impossible because she lives with her parents and technically, nothing in the place belongs to her.
So one can only imagine the stress she must be under. There are many ways when a person can go bankrupt. Often than not, it is due to lifestyle, on people who spend beyond their means. Credit card companies and banks like to do that to you – tempting you with all kinds of goodies but when you really become bankrupt, they sue you nevertheless, when it was because of their services that you become bankrupt. Does not make sense, but that is the way life goes.
Another way is to be a guarantor. Which is why it is very risky to be a guarantor, as if the person defaults on payment, you are the one the creditors go after. If one is to ask for a guarantor, one has to ensure he / she can pay no matter what happens. Even if one has to sign a contract and need guarantors to ensure the bond will not be broken, one still has to honour the contract. It is simply integrity. One cannot expect someone to help you and then get the person into trouble. Due to this, needless to say, not many people are willing to be guarantors.
There are also people who went bankrupt because their business failed, or they lost their jobs. These are the people whom we should show the most compassion to, because I do not think people ask for their businesses to fail or to lose their jobs. Some may be the sole breadwinner and have car and housing loans to pay off. Yet when they become jobless and unable to meet the payment, they still get sued, regardless of situation.
Which makes me wonder, at times, is the society really so materialistic now that money matters to all no matter what happen, without the least bit of compassion to people who are already in dire straits? When people are already down, they least one can do is to offer help or try to think of solutions, instead of hounding them when they clearly are not able to pay back for the time being. In this case, can creditors not just buy a bit of time?
Recently, I have been studying the Bankruptcy Act rather thoroughly. I got a big scare due to my situation a few months back, and now with accounts of friends filing for bankruptcy and being sued, I thought it is wise to know what kind of recourse there is just in case. The Act states the definition of a bankrupt, procedures and when someone will be declared bankrupt, what the Sheriff will do to a bankrupt and limitations on an undischarged bankrupt, as well as limitations even after one has been discharged.
Essentially, once a person is going to be sued for bankruptcy (or self-declare), there will be a court order, as well as a Writ of Seizure and Sale. Thus, all movable property like car, television, furniture, computer, will be sent to the Sheriff's office and auctioned off. Then a Garnishee Order will be levied on the salary, and the salary will then be transferred directly to the banks, with just a small portion for the living expenses.
Even the passport will be confiscated, and any overseas trips will have to be given permission by the Insolvency's Office. In other words, no more leisure trips! These will continue for months and years until the person has paid back every single cent, plus interest, plus late charges, plus whatever legal fees incurred.
I have a friend who is going to file for bankruptcy. She recently lost her money in bonds due to a certain bank becoming bankrupt. She is holding a relatively good job with pretty comfortable pay, and has numerous credit cards and credit lines to her name. But since the loss, she has been unable to meet her credit card payments. Of course banks start calling her and issuing her letters.
As I have mentioned, banks are the most merciless of the lot. They give good promises to get you, then turn their backs on you the moment you run into trouble. Which is why I ended up cancelling most of my facilities. Anyway, the banks wanted to do a Writ of Seizure and Sale at her place, which is impossible because she lives with her parents and technically, nothing in the place belongs to her.
So one can only imagine the stress she must be under. There are many ways when a person can go bankrupt. Often than not, it is due to lifestyle, on people who spend beyond their means. Credit card companies and banks like to do that to you – tempting you with all kinds of goodies but when you really become bankrupt, they sue you nevertheless, when it was because of their services that you become bankrupt. Does not make sense, but that is the way life goes.
Another way is to be a guarantor. Which is why it is very risky to be a guarantor, as if the person defaults on payment, you are the one the creditors go after. If one is to ask for a guarantor, one has to ensure he / she can pay no matter what happens. Even if one has to sign a contract and need guarantors to ensure the bond will not be broken, one still has to honour the contract. It is simply integrity. One cannot expect someone to help you and then get the person into trouble. Due to this, needless to say, not many people are willing to be guarantors.
There are also people who went bankrupt because their business failed, or they lost their jobs. These are the people whom we should show the most compassion to, because I do not think people ask for their businesses to fail or to lose their jobs. Some may be the sole breadwinner and have car and housing loans to pay off. Yet when they become jobless and unable to meet the payment, they still get sued, regardless of situation.
Which makes me wonder, at times, is the society really so materialistic now that money matters to all no matter what happen, without the least bit of compassion to people who are already in dire straits? When people are already down, they least one can do is to offer help or try to think of solutions, instead of hounding them when they clearly are not able to pay back for the time being. In this case, can creditors not just buy a bit of time?
0 comments:
Post a Comment