Friend Guaranteed Truck Loan Pre-Covid Gone Sour

[Barley]

Hello,

a friend of mine was the front desk manager at a hotel in Chiang Mai and guaranteed the purchase of a couple year old used truck to a co-worker.

 

The hotel closed, both of them lost their job due to Covid, the truck buyer cannot be found by the bank, neither can the truck.

 

My friend has a 2nd court date next week in province court - during the first date in July the bank's lawyer told her they will try to find the truck and the buyer.

 

Now she is very worried that they haven't found either because both disappeared from buyer's last known address, and since she guaranteed the loan, she will have to pay back the loan or go to prison. Due to Covid she has zero money left and debts of her own.

 

Would anyone have any well meaning advice for her, what she can do, what are her rights, and how she can get out of this mess?

[Whale]

I can't but am interested in the replies you may get. Over the years I have acted as guarantor for some loans and I always regretted agreeing even though they did not go south. 

[mtls2005]

Does she have her passport in hand?

 

What is the status of her stay? Valid, current 60-day Covid extension?

 

How much is left on the loan?

 

This is a civil matter? And not a criminal one?

 

13 hours ago, Barley said:

Due to Covid she has zero money left and debts of her own.

Are these additional debts owed in Thailand?

 

 

She can't earn in Thailand. Throwing her in jail does the bank no good. Maybe try to fashion an agreement to repay the loan once she is allowed to return to her home country, where she can find work, earn income and repay the loan?

 

[Mac Mickmanus]

3 minutes ago, mtls2005 said:

Does she have her passport in hand?

 

What is the status of her stay? Valid, current 60-day Covid extension?

 

How much is left on the loan?

 

This is a civil matter? And not a criminal one?

 

Are these additional debts owed in Thailand?

 

 

She can't earn in Thailand. Throwing her in jail does the bank no good. Maybe try to fashion an agreement to repay the loan once she is allowed to return to her home country, where she can find work, earn income and repay the loan?

 

I assumed that She is a Thai National and not a foreigner 

[actonion]

 A couple of years ago  a Thai driving  a pick up smashed into the rear end off my pick up resulting in his truck being wiped out from front bumper  to windscreen, he had no insurance, his truck was on  Toyota finance, and he had no  bank accoun, (he said), we found out he had'nt made a payment for over 6 month to Toyota finance and that the finace company were looking for him, & the truck, My wife rang the finance comapny to tell them of the trucks where abouts, but they said they were not interested, when we asked why, they said because we would have to pay you for thE information which we said we can give for free lol... nothing makes sense here !!

[mtls2005]

27 minutes ago, Mac Mickmanus said:

I assumed that She is a Thai National and not a foreigner 

 

Oops. 

 

My bad. 

 

In my best Roseanne Rosannadanna, "Nevermind".

 

 

[KeeTua]

18 hours ago, Barley said:

My friend has a 2nd court date next week in province court - during the first date in July the bank's lawyer told her they will try to find the truck and the buyer.

I wouldn't put much faith in what the bank lawyer said, the lawyer is your friend's adversary. I doubt the bank will put too much effort into locating the vehicle since they have your friend on the hook for the money and already in court. I think your friend needs to put a lot of effort into locating the truck buyer and hopefully the truck too.

 

The buyer must have some kind of online presence your friend is aware of like Facebook or Line. Check out the potential contacts/friends/family via the online apps. Thais aren't very good at being loners and disappearing.

[Barley]

There is a new development:

She spoke with the company who sold the car and they said they found the truck one week ago.

 

But no sign of the buyer. So they said my friend would still be liable for a bunch of costs: like interest, reposession charges, court costs, decrease of value of the car, etc.

 

She has spoken with a free volunteer lawyer who can give her advice but for some reason is not able to represent her in court.

 

Doesn't the Thai legal system provide legal representation for the needy?

 

Now I was wondering if this wouldn't bring the amount in controversy down to below 300k, which AFAIK would mean that it is no longer under the jurisdiction of the province court but the local court.

 

Wouldn't that mean cheaper court cost, more time, and easier legal representation to her? How could she get the case dismissed from the province court?

 

Can't she just declare with proof like bank statements that she really can't pay anything and wouldn't they understand that there you can't get water from a dry stone.

 

Most of her predicament is because of the Covid pandemic (job loss of her and buyer). Are there some provisions for that?

 

Is there a better way for her to get legal advice?

[KeeTua]

10 hours ago, Barley said:

Can't she just declare with proof like bank statements that she really can't pay anything and wouldn't they understand that there you can't get water from a dry stone.

If the bank or finance company accepted her as a co-signer for the loan she must have had some assets or was it because of her position at the hotel?

 

As far as the bank is concerned the fact she hasn't any money in her own bank account doesn't prevent her from taking out loans from friends or family or selling off assets to cover the debt she is now responsible for.

 

It's very good news the truck has been found and recovered(?) the buyer should be in that area too if she wants to try and track him down. Personally I think she needs to negotiate what she now owes and put an end to this because the longer it drags on the more expensive it will likely get for her. The lawyer she will be going up against is probably well paid and very experienced in this type of case and she will end up paying that lawyer's fee as well as her own.

 

Maybe that free volunteer lawyer can provide advice as how to avoid going back to court, negotiate and settle instead of trying to get out of paying the debt.

[Barley]

Yes, she was accepted as guarantor because of her position as front-desk manager at the hotel.

 

She doesn't have any assets at all, only debts.

[couchpotato]

On 9/17/2021 at 8:28 AM, mtls2005 said:

Does she have her passport in hand?

 

What is the status of her stay? Valid, current 60-day Covid extension?

 

How much is left on the loan?

 

This is a civil matter? And not a criminal one?

 

Are these additional debts owed in Thailand?

 

 

She can't earn in Thailand. Throwing her in jail does the bank no good. Maybe try to fashion an agreement to repay the loan once she is allowed to return to her home country, where she can find work, earn income and repay the loan?

 

She is Thai...why the status of stay/passport questions!

[billd766]

5 hours ago, couchpotato said:

She is Thai...why the status of stay/passport questions!

It was not made clear in the OP.