Drowning in debt: options for my Thai friend?

[onlycw]

Married with a daughter, 34, earns 20 k and his liabilities are >20 k. His wife stopped working due to some health issue. 

Now the finance company is suing over his 2549 D-Max truck bought 2 years ago for 260 k. In court, they want 248 k. 108 k instantly? Why can't he just surrender the truck?

 

I have many other questions, including

 

1. is there personal bankruptcy?
2. Who could help someone who is clearly out of his depth?
3. What would be the protected amount a debtor may earn without creditors being able to grab?
4. Unless there was fraud, how on earth can responsible lenders allow someone to pledge 100% of his total income?!?

 

Elsewhere, I have noticed shocking stupidity & recklessness when it comes to spending on debt. New cars (for the daughter in Bangkok, with its good public transport), Iphones, Ipads etc. Buy anything on some 30-months-finance plan.

°°°

 

My friend contemplated suicide. 

 

Surely, there must be ways to handle this better? 

 

My dream is to negotiate some settlements and perhaps advancing what's needed to  c l o s e  the credit cards etc. 

 

What kind of experiences can you share about someone like him? Are there BK lawyers? (He lives near Chiang Mai).

 

Say he cannot pay what the court demands. Will his home get auctioned off next? 

 

Closing, Google Translate has its issues. We haven't been able to communicate in English...

 

Thank you in advance for sharing true stories and giving tips. (I fear he has been ignoring the debt monster far too long).

[ramrod711]

Sorry for your friends plight....but it happens everywhere. I think the plan that most people who can't manage money choose is to play the lottery.

[jenny2017]

Your friend bought a car on finance and it seems that the finance company wants to have the car back because he can’t pay the monthly installments.

 

 I’m afraid that it’s a hard learning process that you can’t buy more than your salary can pay for.

I don’t know how a lawyer would be helpful, other than being deeper in debt.

 

 

[Airalee]

Do you think that after you “advance what’s needed” that your friend will change his debt financed lifestyle and forgo all the accoutrements deemed essential for “face” in Thai society or will he just see it as a free pass to pile on more debt for more “stuff”.

[BEVUP]

2 minutes ago, Airalee said:

Do you think that after you “advance what’s needed” that your friend will change his debt financed lifestyle and forgo all the accoutrements deemed essential for “face” in Thai society or will he just see it as a free pass to pile on more debt for more “stuff”.

All the above & I hope your not planning to get your money back

They just keep juggling money around (he no doubt probably owes others )

[onlycw]

6 minutes ago, jenny2017 said:

Your friend bought a car on finance and it seems that the finance company wants to have the car back because he can’t pay the monthly installments.

 

 I’m afraid that it’s a hard learning process that you can’t buy more than your salary can pay for.

I don’t know how a lawyer would be helpful, other than being deeper in debt.

 

 

Well, I heard tales of lenders offering "to settle" claims for quick cash payments. 

 

WHY hasn't he returned that blasted truck voluntarily?!? (Yours truly has been making do with a 1 year old Yamaha Spark for 23,xxx THB). Happiness requires one to live within one's income. Adjusting to reality is something we all have to do.

[Peterw42]

OP, The truck figures dont add up. 2 years of payments should have paid something off the principle (not 12k). He must have missed a lot of payments or maybe redrawn on the loan ?

 

Why can't he just surrender the truck?

Giving the car back is usually an option but its maybe worth less than the debt now. Maybe its not an option he is exploring.

 

What kind of experiences can you share about someone like him? Are there BK lawyers? (He lives near Chiang Mai).

There are sites like this offering debt consolidation loans

 

https://www.moneyguru.co.th/en/personal-loan/debt-consolidation

[Peterw42]

The more Thai friends I get, the more I realise that this story is the case for a big percentage of the population. Everywhere I have lived in Thailand and you make friends or get to know the neighbours and you realise that many are in the same boat, or worse, they also owe the money lenders as well.

 

It doesnt make sense, 90% of the population earns 10k-20k a month but 90% of the population are driving around in new cars with payments of 20k a month.

[jackdd]

3 hours ago, Peterw42 said:

It doesnt make sense, 90% of the population earns 10k-20k a month but 90% of the population are driving around in new cars with payments of 20k a month.

Most people who i asked about their cars: 10k per month over 72 months

[altcar bob]

Love it< I get asked to help,just laugh at them

[BEVUP]

4 minutes ago, altcar bob said:

Love it< I get asked to help,just laugh at them

Agree

i've been burnt in the past, so now just tell the wife I don't care about any of them & hope a Chinese driver makes sure the job is done

[Jdiddy]

Seems like they just have to have their cars and other hi-so crap they dont need for social status even if it means living a life of complete misery

[midas]

5 hours ago, Peterw42 said:

The more Thai friends I get, the more I realise that this story is the case for a big percentage of the population. Everywhere I have lived in Thailand and you make friends or get to know the neighbours and you realise that many are in the same boat, or worse, they also owe the money lenders as well.

 

It doesnt make sense, 90% of the population earns 10k-20k a month but 90% of the population are driving around in new cars with payments of 20k a month.

And what happens if the jobs are not there in the future?

According to the the International Labour Organization  up to 98 percent of workers in Thailand could lose their jobs to automation  in what it said are the most at-risk professions: Subsistence farmers; farm laborers; retail sales assistants; stall and market salespeople; livestock and dairy producers; food counter attendants; cooks; construction workers; office clerks; and junior accounting professionals.

 

http://www.khaosodenglish.com/news/business/2017/05/31/machines-coming-take-millions-thai-jobs-report/

[milwaukeeboy]

He is not your friend. You are being played for your empathy and compassion. Stupid and irresponsible people consider you to be a sucker or easy mark.

If you really like the guy and can afford to give away some of your hard earned cash while feeling good about it, knock yourself out.

[klauskunkel]

Quote

Drowning in debt: options for my Thai friend?

start a Ponzi scheme

[dickjones2018]

loan him the money and write it off as a GIFT as you will never see it back and don't be surprised if he ignores you after this

[RichardColeman]

 

On 3/4/2561 at 2:20 PM, onlycw said:

Unless there was fraud, how on earth can responsible lenders allow someone to pledge 100% of his total income?!?

 There you have it in one. The guy is a complete moron for signing up to losing all his entire monthly income ! And by fraud, it would have to have been by your 'friend' stating he had a higher income. 

Stay away from this fool.

[jenny2017]

OP< show your friend what some Farang would do.

 

   https://www.gofundme.com/toon-bodylam-charity-run-for-11-thai-hospitals

 

P.S. You might find out that it can hardly be the real Bodyslam. He wouldn't make a spelling mistake writing his name. 

Edited April 4, 2018 by jenny2017

[jimn]

Thai friend? Are you sure. No such thing

[dotpoom]

On 03/04/2018 at 2:29 PM, ramrod711 said:

Sorry for your friends plight....but it happens everywhere. I think the plan that most people who can't manage money choose is to play the lottery.

Really?

[HLover]

On 4/3/2018 at 2:20 PM, onlycw said:

perhaps advancing what's needed 

This is the second worst way to 'help' his situation.

[dotpoom]

Sorry.....gremlins at work.

Edited April 4, 2018 by dotpoom

[1FinickyOne]

37 minutes ago, jimn said:

Thai friend? Are you sure. No such thing

What a silly thing to say - - of course there can be Thai friends... I have many. And there is no financial aspect to our friendship. 

[Stevemercer]

It is a common issue in Thailand.

 

Normally the person/company owed money will require the debtor to sign a court agreement for a revised repayment schedule. If this schedule is not met (and it usually is not) then the company may sue the debtor and try to recover any assets. Of course, he probably won't have any assets at this stage worth seizing.

 

It is possible for a person to go through a bankrupcy process, but he would only normally do this if he has considerable assets he wants to protect.

 

These things will work themselves out over a matter of years. If the man is lucky he might be able to get a 'loan' from a friend to bail him out for another year or so. If he is super lucky he might win the lottery or have a nice farang man help him out.

 

 

[osandpo]

Bankruptcy is not an option for him. A debtor can’t voluntarily go bankrupt here. It’s only available as a legal short cut for creditors - and then only if someone provably has total debts which exceed his assets by 1 million baht. 

Last year Bank of Thailand set up a debt clinic which is being managed by Sukhumvit Asset Management (SAM) . http://www.debtclinicbysam.com/ 

I’m not sure how active it is. It took a long time to agree operating and reporting procedures with the banks. At the launch only debts to banks were included and to be eligible, the debtors had to have at least two different bank creditors. They did plan to extend to other BOT supervised financial institutions though - not sure when that will happen. 

The reason for the high claim amount in court is probably penalty interest. If he negotiates with the creditor he may be able to get the judge to impose a settlement where a lot of that penalty is waived. As he has little income he should offer to surrender the vehicle and then pay x hundred baht per month, subject to all penalty interest and at least 50% of the unpaid contractual interest being  waived - needs to be a realistic affordable monthly payment amount though not just empty promises. Judges are sympathetic to cooperative debtors and creditors rarely get the full debt interest from a court IF the debtor does not repeatedly break promises

 

If there’s no compromise in court the after judgement the creditor gets an execution order and that’s when they may take further legal action to take other property like a house, normally only after they’ve repossessed and sold the vehicle though. If the debt after selling the car is small and especially if it’s mostly interest, the creditor may not bother though. 

If it’s a normal car loan though I am surprised they went to court (which costs money) before repossession of the car. I suspect either it’s just a first warning letter of legal action (to pressure him) OR they think he is not truthful about his income and assets

 

As others have taken obscene delight in saying, don’t lend money or guarantee his debts UNLESS you’re fully aware that this is a gift and you will not be repaid. Regardless of nationality or personal honesty, people who can’t manage money normally remain unreliable with their finances. 

 

Other advice you could give him:

Don’t borrow from loan sharks (including the so called car/home for cash “leasing” companies) to refinance this debt

Get in contact and stay in touch with the creditor to negotiate a partial settlement- if the case is already in court, this must be accepted by the judge

First offer should be to give them the car and waive all the remaking debt but  If they reject that, tell them to waive penalties and some or all unpaid interest

[Krataiboy]

Join the crowd. . . 

 

Headlines from a lead story in the Bangkok Post:

 

NCB concerned about delinquent debt

Personal borrowing by Gen Y raises alarm 

 

For the full story:
https://www.bangkokpost.com/business/finance/1440263/ncb-concerned-about-delinquent-debt

[falangjim]

Live within your means. I earn 4x the salary of the OP's friend, but do not waste $ on carrs, motorbikes, or gadgets I can't afford. I take the bus, have a modest Samsung phone, and don't take luxury holidays in hotels. Enough left over for investing in my family's future each month. Really, the immaturity of hi-so wanna-bes need one message: learn your limits.

Oh, and I've stopped helping these losers who beg me for money. Ever hear of a job? Better education? Help yourself.

[Lacessit]

He may be better off selling the truck to the OP,  then leasing it back from him. Use the proceeds to settle the finance company debt. If he doesn't need the vehicle for work for work, walk away. No, run.

Thais don't really understand the difference between good debt and bad debt, and banks/finance companies are quite happy for that state of affairs to continue. "Face" also means most don't understand there's more to life than trying to impress friends and neighbours.

[altcar bob]

1 hour ago, kenk24 said:

What a silly thing to say - - of course there can be Thai friends... I have many. And there is no financial aspect to our friendship. 

 

Yet

[Telly]

Hi-so I know has alimony of 100k a month and complains she doesn't have enough money for food. 

But she absolutely needs to stay in a gated bungalow, drive a Merc, have Birkins and kellys, send son to private school 555