Personal Bankruptcy In Thailand?

[NJHOUSE]

Hello Thai Forum Community,

I read this forum because you guys are very knowledgable and I apprecite the great insight.

I have a Thai girlfriend from a nice family. We met about 15 months ago and she's a great girl. I'd like to marry her but her family is in serious financial trouble. The father has been involved with the underground lottery and their luck ran out some years ago. They owe a local bank in a nearby province about 3 million baht. My girlfriend has been sending alot of her hard earned money back home each month. She unconditionaly supports her family as most Thais do. She usually sends about $1,200-$1,400 USD each month because she has a good job in the Middle East. (Airline)

She doesn't like talking about her family's problem but I think, from what I understand, that her money is just covering the interest on the loan! They aren't making any progress with paying off this loan. It is a very stressful and sad situation.

This is affecting our decision to marry because I can't be supporting her family especially since they owe 3 million baht with huge interest piling up.

Does anyone know if Thailand has a Bankruptcy law similar to the UK or the States? I'm thinking they would be better of giving up their house and just starting over without any debt IF that is possible.

Anyone have any experience with this? I would greatly appreciate any help.

James

[andy1308]

There are people far more knowledgable about this than me, but I think declaring bankruptcy in Thailand has more serious and long-term ramifications than in other parts of the world- such as loss of passports, etc. And, if they own money to 'underground' organisations I doubt they would stop just because the people concerned have declared bankrputcy. I might not be reading that right because you mention owing money to a bank - who would of course take notice of an official ruling.

Whatever happens I wish you and those concerned well, but I would suggest taking some professional and independent advice.

[NJHOUSE]

From what I understand...The loan is from a bank. I guess they were able to somehow get a loan to pay whoever they lost the money too.

This is a situation they can never get out of so I'm hoping there must be some relief alternative to this through the courts.

I'm asking her to come back to Thailand so we can live together but that would mean she wouldn't be able to give them nearly as much as she has been giving.

I hope there is a way out.

There are people far more knowledgable about this than me, but I think declaring bankruptcy in Thailand has more serious and long-term ramifications than in other parts of the world- such as loss of passports, etc. And, if they own money to 'underground' organisations I doubt they would stop just because the people concerned have declared bankrputcy. I might not be reading that right because you mention owing money to a bank - who would of course take notice of an official ruling.

Whatever happens I wish you and those concerned well, but I would suggest taking some professional and independent advice.

[tingtong]

tell me if i am wrong, but i dont think a bank lend lend you 3 million baht without somthing securing to them...like a house.

maybe fot the short run, the best to give up the house, and rent till build up enogh cash to buy something again. the interests must run high( you say with around 40k/month they dont make progress), so a rent should save at least half of the interest expenses...in a provence much more actually.

however they do, good luck, and i wish you a lots of patience. thai tend to have there own math rules.

[LoveDaBlues]

Hello Thai Forum Community,

I read this forum because you guys are very knowledgable and I apprecite the great insight.

I have a Thai girlfriend from a nice family. We met about 15 months ago and she's a great girl. I'd like to marry her but her family is in serious financial trouble. The father has been involved with the underground lottery and their luck ran out some years ago. They owe a local bank in a nearby province about 3 million baht. My girlfriend has been sending alot of her hard earned money back home each month. She unconditionaly supports her family as most Thais do. She usually sends about $1,200-$1,400 USD each month because she has a good job in the Middle East. (Airline)

She doesn't like talking about her family's problem but I think, from what I understand, that her money is just covering the interest on the loan! They aren't making any progress with paying off this loan. It is a very stressful and sad situation.

This is affecting our decision to marry because I can't be supporting her family especially since they owe 3 million baht with huge interest piling up.

Does anyone know if Thailand has a Bankruptcy law similar to the UK or the States? I'm thinking they would be better of giving up their house and just starting over without any debt IF that is possible.

Anyone have any experience with this? I would greatly appreciate any help.

James

Nice family.......are you sure?

[pumpuiman]

That interest rate seems impossibly high.

Perhaps your girlfriend should get a loan at more attractive rates.

She could pay off her families debt, and save money while paying the loan off

[RamdomChances]

Was the loan 3 mill or is that whats left ? A 3 mill loan her money should cover depending on how many years it's for. If they can't pay, then don't pay, get the bank to take them to court, as long as they can pay something a month the bank should make a deal, mabye increasing the years.

If they then fail on these payments the bank may re-posess (as someone else said the banks don'y offer 3 mill insecured loans). This means the bank will put the property/land up for sale, they can still live there, use the land until the bank sells it, which could be years. I know Thai people here who have been "re-posessed" for about 10 years.

The underground lottery is pretty common, loads of people play in little sindicates although that a huge ammount , I would'nt read too much into it unless it's still an addiction

[GuestHouse]

My advice is as follows:

The loan is absolutely certain to be against collatoral, otherwise there would be no loan made.

So: Get your G/F to take her family to the bank and seek a settlement against the collatoral. This may leave either a residual amount of money after payment of the debt, in which case all well and good, or it may leave a residual debt (reduced by the capital in the collatoral) in which case the loan and stain on resources is greatly reduced.

If your G/F and or her family are unable to bring themselves to settle the debt in this manner, accept that they have stuck their heads in the sand and go get yourself a new G/F.

My advice is not the same as my own actions.

Some years ago I too dated a rather lovely lady who had a father with gambling debts. When I found out about his addiction and the extent of his debts, I said bye bye baby goodbye.

Solving the current debt is one problem, but you can bet your bottom dollar (and it will be YOUR bottom dollar) that as soon as the father has access to more cash he'll be back gambling.

Do your G/F a favour and if she can't accept the favour do yourself a bigger favour - Simple as that.

[lannarebirth]

$1,200 - $1,400 monthly payments would significantly pay down principal on an outstanding debt of 3 million baht, unless the loan is from a loan shark, which you say it is not. I do not believe you are in full possession of the facts.

[Heng]

10 years is hardly the standard for eviction. It all depends on how quickly the new owners want to utilize the property. The legal execution department, which can be found at led.go.th is pretty quick to auction off seized properties. From last payment to auction to new owner having the chanote transfered to him/her... on the fast side (and getting faster), I've seen it at around 9 months. After that, you're really just treading water until you're out of there. Note, not all properties are seized because of repossesion. Some are court ordered for any of hundreds of possible reasons.

edit: I forgot to add... I've rarely seen a person with problematic bank debt who didn't also have non-bank debt (finance company, credit card, legal pawn shop, or illegal loan shark/money lender).

Edited March 23, 2007 by Heng

[GuestHouse]

Just to put this in perspective.

A Thai guy, who for the sake of argument earns Bht 12K a month owing Bht3,000,000 in gambling debts is equivelent of a British guy who earns GBP25K a year owing GBP520K.

That is a shed load of money.

Can you imagine meeting some sweet ducky darling in a pub back home and she lets on that her dad owes half a million quid in gambling debts... You'd be legging it faster than if she weighed 22 stone had bad breath and septic acne.

Do the right thing son... walk!

Edited March 23, 2007 by GuestHouse

[stats]

Are u sure loan 3 mil from a bank ? Personal loan ?

[nick2k]

I knew someone who was in your situation once. I asked him to look in the mirror. and if he saw a handsome man along the lines of a brad pitt lookalike, I would consider helping the girl out. otherwise, sounds like a scam.

the guy didn't take my advice, and eventually he lost about 125 grand. between the house, the car, the farm, and the sin sod, he was basically taken to the cleaners.

even if the story was true, that is a lot of baggage to accept into your life. why bother? so many other girls out there in the world.

[NJHOUSE]

All that money doesn't go towards the loan. You're right though, I don't know all the facts. She doesn't like talking about it plus as someone else said... Thais don't even know their math so...

It doesn't look good for my girlfriend and I.

$1,200 - $1,400 monthly payments would significantly pay down principal on an outstanding debt of 3 million baht, unless the loan is from a loan shark, which you say it is not. I do not believe you are in full possession of the facts.

[topfield]

Can I offer you a word of advice Buddy....you are making one BIG mistake....You are dealing with Thai people and Thai problems and you are a FALANG.

No way can you do this !

Get a Thai...preferably an English speaking educated lawyer ...to find out the TRUE facts and any possible solution.

Agreed TV friends ?

[skippybangkok]

Bankruptcy.....lol...... sounds like a bullet will be the choice of settling

[madjbs]

If money problems in your girlfriends familly would make you split up just before your prepared to marry her, then you shouldnt be getting married in the first place.

[backflip]

Let's say you and your GF moved to the USA. Let's say you got involved in gambling, and owed a lot of money. Let's say your GF logs onto a Thai GF expat site, and then asks the group of Thai women "how does my American BF declare bankrupcy?" Does that make since? Of course not - you're an American, and you know how to file for bankrupcy in the US. You certainly don't need your Thai GF sticking her nose into the intricacies of American jurisprudence.

So, why do you think it's up to you to discover how to have your Thai GF's family declare bankrupcy in Thailand? The answer is simple: "it's not". It iss none of your business. She and her family have been doing well for generations without your interference.

You are stuck in phase 2 (and soon to be phase 3) of the Thai GF scam. Phase 1 is "physical attraction". Phase 2 is "emotional attraction" - where she tries to (and in your case, had succeeded very successfully) to get you emotionally involved in her ordeals. Phase 3 is "financial attraction" - she will use you as a personal bank account. You will end up paying for her, her family, and the financial missteps - whether real or imagined.

[NJHOUSE]

You hang out at Nana too much. The girl could care less about money. Of course it would make her happy if I paid off their debt. She knows I have no intension to do so. I would like to help however. That is the reason for my appeal for suggestions.

There seems to be a bankrupcty option because I do see some limited info about it on the net. I told her to speak with a lawyer the next time she goes home.

Let's say you and your GF moved to the USA. Let's say you got involved in gambling, and owed a lot of money. Let's say your GF logs onto a Thai GF expat site, and then asks the group of Thai women "how does my American BF declare bankrupcy?" Does that make since? Of course not - you're an American, and you know how to file for bankrupcy in the US. You certainly don't need your Thai GF sticking her nose into the intricacies of American jurisprudence.

So, why do you think it's up to you to discover how to have your Thai GF's family declare bankrupcy in Thailand? The answer is simple: "it's not". It iss none of your business. She and her family have been doing well for generations without your interference.

You are stuck in phase 2 (and soon to be phase 3) of the Thai GF scam. Phase 1 is "physical attraction". Phase 2 is "emotional attraction" - where she tries to (and in your case, had succeeded very successfully) to get you emotionally involved in her ordeals. Phase 3 is "financial attraction" - she will use you as a personal bank account. You will end up paying for her, her family, and the financial missteps - whether real or imagined.